Transfer News: Brondby defender Daniel Agger has signed for European champions Liverpool in a four-and-a-half year deal.

"The parties have agreed not to disclose the details of the transfer deal except from the fact that Liverpool will play against Brondby in a friendly at Brondby Stadium," the Danish club said in a statement.

Agger, 21, is Benitez's second major signing of the transfer window after Dutch defender Jan Kromkamp's arrival from Villarreal last week.

"Daniel is a player we have been following for a long time," Benitez told Liverpool's website.

"We've been told he's one of the best centre halves in Denmark for 20 years. A lot of scouts have spoken highly of him and there has been lots of interest from other clubs."

Elsewhere Birmingham have agreed a fee of £1million with Espanyol for striker Walter Pandiani. The Uruguay international is travelling to Spain to discuss personal terms with the La Liga club.

The 29-year-old first joined Blues on loan in January 2005 from Deportivo La Coruna before the move was made permanent in early August 2005 for £3 million.

During his time at St Andrew's Pandiani has made 35 appearances and scored six goals.

Earlier today Portsmouth completed the signings of Sean Davis, Pedro Mendes and Noe Pamarot from Tottenham.

The trio struggled to establish themselves under Martin Jol at White Hart Lane and have been recruited by boss Harry Redknapp to help in Pompey's bid for Premiership survival.

Mendes and Davis found their opportunities limited after Spurs brought Edgar Davids and Jermaine Jenas to the club in the summer, while full-back Pamarot has only featured twice this season.

The fee for the three players is undisclosed but is understood to be around £7million.