Chelsea have signed Fernando Torres for a British record transfer of £50m in a five-and-a-half-year deal which will see him at Stamford Bridge until 2016.

The manner of the payment of the contract is unclear, but it is believed that the Spaniard will claim £175,000-a-week. Torres will wear the No. 9 shirt at Chelsea and is expected to make his debut against his former club Liverpool on Sunday.

He said, I am very happy with my transfer to Chelsea and I am looking forward very much to helping my new team-mates this season and for many years to come. Having played against Chelsea many times since coming to England, and in some very big games I will never forget, I know there are many great players here and I will work hard to win a place in the team. I hope I can score some important goals for the supporters to enjoy this season.

Chelsea chairman Bruce Buck said, 'This is a very significant day for Chelsea, capturing one of the best players in the world with his peak years ahead of him. We have long admired the talents of a player who is a proven goalscorer in English football and Fernando's arrival is a sign of our continuing high ambitious. I hope every Chelsea fan is as excited as I am with this news.'

Chief executive Ron Gourlay added, 'Signing a player of the stature of Fernando Torres benefits the club on many levels. Carlo Ancelotti was keen to add his talents to the squad as we continue our quest for three trophies this season, we are delighted we have succeed with that wish, and this signing will undoubtedly aid the club in realising our worldwide potential.'

Torres will compete with Didier Drogba and Nicolas Anelka for a starting berth at Chelsea. However, his availability could prompt Chelsea manager Carlo Ancelotti to change his tactics. Importantly, the Spaniard is eligible to play in the Champions League.

Chelsea also claimed the services of Brazilian center-back David Luiz from Benefica with a player plus cash deal of £18m up front, with a further £3.5m to be paid in 2013 and Serbian youth midfielder Nemanja Matic moving to the Estádio da Luz.

The 23-year-old Brazilian, who flew to London to complete his medical, will add some much-needed depth to a stretched defence.

Liverpool were the other big spenders on transfer deadline day. In a shocking bit of news, perhaps more so than Torres' transfer, Andy Carroll was confirmed as a Liverpool player after the Merseyside club agreed a five-and-half-year deal with Newcastle United for a record fee of £35m. The deal, which will keep him at Anfield till 2016 was agreed earlier in the day and the deal was subject to a medical, which the striker passed.

Andy Carroll will wear the No.9 shirt for Liverpool, previously adorned by Fernando Torres who moved on to Chelsea. 

The deal makes Andy Carroll the most expensive English player in the history of football. He is brought in as a replacement for Torres who was sold to Chelsea just before the close of the transfer window. 

Liverpool said in a statement, Andy Carroll has tonight completed his transfer from Newcastle United to Liverpool FC and signed a five-and-a-half-year deal that will keep him at Anfield until 2016.

The club agreed a record transfer fee with Newcastle earlier in the day for the transfer of the England international striker. The deal was subject to the completion of a medical, which the player has now passed. Andy Carroll will wear the No. 9 shirt for Liverpool.

A statement in Newcastle's website said, Andy Carroll has completed his switch to Liverpool for an undisclosed fee. The England international handed in a transfer request to Newcastle on Monday afternoon, which was accepted by the club. Carroll, 22, travelled down to Merseyside for talks with their Premier League rivals and finalised the move to Anfield just before the 11pm transfer window deadline.

Liverpool football club also confirmed the signing of Luis Suarez from Ajax in a five-and-a-half-year deal, which will keep the Uruguayan International at Anfield till 2016. The fee is reported to be around the region of €26.5m which was agreed on Friday. However, the deal was subject to a medical which the player completed on Monday. Suarez has been handed the No.7 shirt for Liverpool, which was once worn by his current manager Kenny Dalglish.

However, the much touted Charlie Adam was valued too much for Liverpool's liking, with their offer of £6.3m falling well short of the £14m asked by Blackpool.