Having signed Bayern Munich midfielder Thiago, the Reds have acted swiftly to conclude another deal as they announced the signing of Jota on Saturday afternoon.
Following swift negotiations between Wolves and Liverpool on Friday, Jota travelled to Merseyside for a medical and to sign on the dotted line this morning.
The 23-year-old signs a five-year contract at the club and will take the No.20 shirt, vacated by Adam Lallana following his move to Brighton earlier this summer.
A fee has not been disclosed, but reports from numerous journalists have confirmed an initial fee of £41million, rising to £45million with add-ons.
As with Thiago's transfer, the fee is structured across several years, with Liverpool paying Wolves just £4m - less than 10% of the guaranteed fee - in the first twelve months.
“It's just a really exciting moment for me and my family,” Jota told the official site.
“All of my path since I was a kid and now, to join a club like Liverpool – the world champions – is just unbelievable. I just want to get started.
“It is one of the best teams in the world – the best at the moment because they are world champions. When you look at the Premier League, you always see Liverpool as one of the biggest teams in the country, so it's impossible to say no.
“So we just want to come [here], to give our best and hopefully I can become a good option for Liverpool in the future.”
Meanwhile, Liverpool manager Jurgen Klopp explained what Jota can bring to his side as he called the Portuguese a player with "so much potential."
"Oh my god, plenty of reasons!," Klopp said when asked why Jota caught his eye. "He's a player who gives us so many options to use him.
"He's 23 years old, still far away from being kind of a finished article, so much potential. He has the speed, he can combine, can defend, can press.
"It makes it just more unpredictable and gives us real options for different systems because he can play pretty much all three positions up front in a 4-3-3, if we play with four midfielders he can play both wings. So, these kinds of things. It's just nice.
"And he has some natural things which we have in our game, like this desire and the greed and the direction. He is part of this unbelievable Portuguese generation in the moment, where they have really a lot of obviously quite skilled players.
"We saw the Portuguese team last time, it's quite impressive. So, I'm really happy to have him here. And on top of that, a really good guy and really happy to be here."
The former Atletico Madrid forward helped fire Wolves to Premier League during his debut season at the club, scoring eighteen goals and notching six assists.
He has scored 26 goals and assisted a further 13 in all competitions over the last two seasons.
Speaking before confirmation of the deal, Wolves boss Nuno Espirito Santo admitted Jota would be a big miss for his side.
"Diogo is amazing," he said. "What Diogo did for us is absolutely fantastic. Things happen when naturally they should happen. He's going to the right place. He'll never be forgotten by our fans."
He could make his Liverpool debut in midweek as the Reds take on Lincoln City in the third round of the Carabao Cup on Thursday.