Sakho, 27, returns to Crystal Palace after a succesful loan spell last season and has put pen-to-paper on a four-year contract.
A £26million agreement was reached with Liverpool earlier in the day and the Eagles had until 1am to get the transfer over the line.
They have been chasing the France international all summer as Frank de Boer looks to bolster his defensive ranks.
And they have finally got their man, with the player himself delighted at sealing a permanent switch to Selhurst Park,
Speaking about his return to Palace, Sakho said: “I am really happy to be here because I have some friends here.
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“I loved the challenge last year; it was difficult but beautiful and it’s why this summer I thought that Palace was the best choice.
“I am really excited about playing for the Palace fans again, but in football the past is the past and you need to think about today and tomorrow.
“Last year we did a good job and we need to prove that again and have a good objective. If we put all of our power together, we will have a great season.”
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