(CNN) -- Fernando Torres' highly-anticipated switch to English champions Chelsea was completed just before Monday transfer window closed in a deal that his former team Liverpool said had broken the British record.
Chelsea's website reported that the Spain striker had signed a five-and-a-half-year contract, but did not disclose the fee -- which British media speculated would be about £50 million ($80 million).
However, it was still well short of the world-record $130 million that Spain's Real Madrid paid English club Manchester United for Cristiano Ronaldo in 2009.
In another deal confirmed late on Monday, Benfica said that Brazil defender David Luiz had joined Chelsea in a deal worth $34 million that saw Serbian midfielder Nemanja Matic sign for the Portuguese club.
"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," 2010 World Cup winner Torres told the London side's website.
"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."
The 26-year-old scored 65 goals in 102 Premier League appearances for Liverpool after joining from Atletico Madrid in 2007 in a £20 million deal, netting 81 in 142 games in all competitions.
Torres' move followed the news that Liverpool had agreed a club-record fee for Newcastle's England striker Andy Carroll, who handed in a transfer request in the afternoon after the 18-time English champions made an improved bid.
Just before the 2300 GMT deadline, Liverpool confirmed that the 22-year-old had signed a contract until 2016. The fee was not disclosed but it reportedly surpassed the previous British record of £33 million ($53 million) that Manchester City paid for Brazilian Robinho in 2008.
Chelsea's billionaire owner Roman Abramovich has been relatively quiet in transfer market for the past two seasons, but has this time backed coach Carlo Ancelotti with two marquee signings as his club languish fourth in the table -- 10 points behind leaders Manchester United.
The London team also announced on Monday that the Chelsea FC plc made a loss of £70.9 million ($113 million) for the year ended June 30, 2010.
"The reduction in operating losses and increased sales in 2009-10 shows that we are moving in the right direction especially when viewed against the difficult macroeconomic environment," chief executive Ron Gourlay told Chelsea's website.
"The club is in a strong position to meet the challenges of UEFA 'financial fair play' initiatives which will be relevant to the financial statements to be released in early 2013."
Carroll joined Uruguay World Cup striker Luis Suarez at Liverpool, with the 24-year-old completing his $36 million transfer from Dutch club Ajax earlier on Monday to become Kenny Dalglish's first major signing in his second stint as manager.
The 24-year-old has scored 111 goals in 159 games for the Amsterdam side.
Another high-profile striker on the move Monday was Tottenham's Robbie Keane, who has agreed a loan switch to London rivals West Ham until the end of this season.
The move is likely to become permanent should the Hammers, currently bottom of the EPL, avoid relegation to the second flight.
Manager Avram Grant said after the 3-2 FA Cup win Nottingham Forest that he hoped the Republic of Ireland international would provide the spark to get the club away from the drop zone.
"He is not just a good player, he is a good character that we need in the next 14 games," the Israeli told the UK Press Association.
Tottenham, who face AC Milan in the last 16 of the Champions League next month, were linked with a bid for Atletico Madrid's Sergio Aguero.
But the Argentina striker has signed a new two-and-a-half-year contract extension with the Spanish side until 2014 and told the La Liga outfit's official website: "I'm staying here because I want to."
Spurs manager Harry Redknapp would not confirm his interest in Aguero or other reported targets in Spain as he arrived for Monday's training session, but told Sky Sports that former England defender Jonathan Woodgate would not be leaving on loan.
Woodgate, who has returned to fitness after long-term injury, is needed as defensive cover after captain Michael Dawson was banned for three matches after being sent off in the 4-0 FA Cup defeat to Fulham, while French fellow center-back Younes Kaboul needs an operation, said Redknapp.
United States international midfielder Michael Bradley has joined English club Aston Villa from German side Borussia Monchengladbach on loan until the end of this season.
Villa boss Gerard Houllier told reporters: "We've got to prepare for the future and Michael is 23 and a very hard-working midfielder who can score goals."
Villa allowed Irish midfielder Stephen Ireland to join Newcastle on loan for the rest of this season, almost six months after he arrived from Manchester City.
Houllier also said that the club had received no bids for England winger Ashley Young.
Turkey international striker Tuncay Sanli has moved from English Premier League side Stoke to Wolfsburg in a $7 million deal, the German club announced on their official website.
The Bundesliga side also announced the arrival of attacking midfielders Koo Ja-Cheoul of South Korea and Venezuelan Yohandry Orozco, plus Bayer Leverkusen's Germany international striker Patrick Helmes and Czech midfielder Jan Polak.
The 21-year-old Koo -- who scored five goals in six matches at the recent Asian Cup -- signed a three-and-a-half-year deal from Korean side Jeju United, while 19-year-old Orozco signed from Venezuela's Zulia FC until 2015.
Stoke also allowed former Chelsea and Barcelona striker Eidur Gudjohnsen to join English rivals Fulham on loan, with the Iceland international having failed to win a regular place since his pre-season move from Monaco.
German rivals Schalke signed Iran international midfielder Ali Karimi, who worked with coach Felix Magath when they were both at Bayern Munich, plus clubless Greece striker Angelos Charisteas -- who scored the winning goal in the final of Euro 2004.
Serie A leaders AC Milan confirmed on their website the signing of 34-year-old Italy defender Nicola Legrottaglie from league rivals Juventus, on a contract until June this year.
Italian champions Inter Milan have signed Japan leftback Yuto Nagamoto on loan from Cesena on loan for the rest of this season, with 20-year-old Italy international defender Davide Santon moving in the opposite direction.
The 24-year-old Nagamoto set up the only goal of the Asian Cup final against Australia on Saturday which sealed a record fourth title for the Blue Samurai.
Inter coach Leonardo has allowed Colombian defender Nelson Rivas to join Ukrainian side Dnipro Dnipropetrovsk on loan, with a view to a permanent deal.
Brazil-born Italy international striker Amauri has returned to Parma on loan from Italian rivals Juventus, who have replaced him with Cagliari's Alessandro Matri.
English club Birmingham City signed Nigeria international Obafemi Martins in a six-month loan deal from Russian side Rubin Kazan, after the former Newcastle striker was granted a work permit.
Portugal international striker Liedson has returned to the country of his birth after joining Brazilian club Corinthians from Sporting Lisbon in a $2.9 million deal.
The 32-year-old qualified for Portuguese nationality in 2009 and played for his adopted nation at last year's World Cup finals in South Africa.
Ecuador midfielder Jefferson Montero has swapped Spanish clubs after joining struggling Levante from Champions League hopefuls Villarreal on loan.
Dutch club Feyenoord have signed Denmark international striker Soren Larsen from French side Toulouse on loan for the rest of this season, along with Arsenal's new 18-year-old Japanese forward Ryo Miyaichi and Borussia Monchengladbach midfielder Marcel Meeuwis.