Atletico Madrid have completed the transfer of Luis Garcia from Liverpool while Geremi has left Chelsea for Newcastle.

The Primera Liga club have confirmed that Spainish international Garcia has signed a three-year contract with Atletico for an undisclosed fee.

The deal is expected to smooth the way for Liverpool to complete the record singing of Fernando Torres from Atletico.

"Luis Garcia returns to Atletico and will be presented on Tuesday at 13.30 hours," read a statement from the Spanish club.

"Atletico have reached an agreement with Liverpool to transfer Luis Garcia, who has agreed to a three-year contract.  Once the player completes his medical, he will be presented to the media."

Garcia returns to the Vicente Calderon, where he played in the 2002-03 campaign.

He arrived at Anfield in the summer of 2004 from Barcelona and played a pivotal role in the Reds winning the Champions League that season.

The 29-year-old suffered a serious knee injury this year in January which curtailed his campaign.

Utility player Geremi has completed his move to Newcastle from Chelsea subject to being awarded a work permit.

The 28-year-old will join the Magpies on a free transfer after passing a medical and agreeing a three-year deal.

A Newcastle spokesman said: "Geremi has passed a medical and agreed personal terms with the Magpies, and will arrive on a free transfer from Chelsea on a three-year contract once his work permit has been obtained."