Diouf Anfield bound
Diouf, the current African Player of the Year, wreaked havoc in the French defence in Senegal's shock 1-0 win, with his electric pace worrying the World Champions throughout.
"We can confirm that African Footballer of the Year El Hadji Diouf has now signed a five-year deal with Liverpool, which is wonderful news for everyone at the club," Liverpool spokesman Ian Cotton told the club website.
"The Senegal striker will join up with his new team-mates when the squad report back for pre-season training in July."
Gerard Houllier chose not to take Nicolas Anelka from PSG on a permanent basis and has opted to bring in 21-year-old marksman Diouf with the fee reported to be in the £10 million region.
"I'm delighted to be joining Liverpool. Liverpool are a club that expects to be one of the best in Europe," said man-of-the-moment Diouf.
"I want to be one of the best players in the world and I'm sure that at Liverpool and with a great coach like Gerard Houllier I can do that."
The Reds now have El Diouf, Michael Owen, Emile Heskey, Milan Baros and Jari Litmanen as striking options and there is specualtion that the latter could be set to leave Anfield to accommodate the arrival of the Senegal ace.