The 28-year-old England midfielder left Stamford Bridge in June after failing to agree a new contract with the Premier League champions.

He was linked to Arsenal and Tottenham but has opted for Liverpool, who failed to qualify for the Champions League.

Cole’s arrival follows winger Yossi Benayoun’s move from Anfield to Chelsea for an undisclosed fee in July.

Liverpool Manager Roy Hodgson and Joe Cole

The West Ham academy graduate becomes Liverpool’s second summer signing after Serbia forward Milan Jovanovic arrived on a three-year contract from Standard Liege.

Cole joined Chelsea from West Ham for £6.6m in 2003 and scored 40 goals in 282 appearances, winning three Premier League titles and two FA Cups.

In June he claimed unspecified “political rather than footballing reasons” had led to his departure, but he insisted manager Carlo Ancelotti was not the cause of those problems.

606: DEBATE
Cole is an inspired signing – furthermore it is a signing that Rafa could never have pulled off

Redfootball

“It is not financial and it is nothing to do with Carlo,” Cole said at the time. “I love Carlo. I think he is a top guy and a top manager.

“I loved my time at Chelsea, I love the fans but it is a story for another day and I will tell it but now is not the time.”

After recovering from 10 months out with a ruptured cruciate ligament, Cole grew frustrated at having to settle for a bit-part role in his final season at the club.

He was used mainly as a substitute and, when he did play, Ancelotti often deployed him in a wide position.

Cole, capped 56 times by his country, featured in two of England’s matches at the 2010 World Cup, though on both occasions he was introduced as a second-half substitute.

“Next season I want to have a fantastic season for England and whatever club I am at. The next contract will be a footballing decision,” he added earlier in June.

“I want to play in a more central position and I want a manager who has faith in me.”

Tottenham boss Harry Redknapp, who nurtured Cole’s early career at West Ham, had talked of his desire to take the midfielder to White Hart Lane.

I’ve been an admirer of Joe’s for the last few years. He is a player that excites fans and he is a player that we desperately needed

Former Reds defender Alan Kennedy

Spurs finished fourth in the Premier League last season to earn a Champions League qualifying spot while Arsenal, also admirers of Cole, would have offered guaranteed Champions League football.

But he opted for Liverpool and new Reds manager Roy Hodgson will hope to bolster his squad further with a new left-back following the departures of Fabio Aurelio and Emiliano Insua.

Hodgson is also hoping to retain the services of captain Steven Gerrard and star striker Fernando Torres, both of whom have been linked with moves away from Anfield.

And former Liverpool defender Alan Kennedy believes Cole’s arrival could go some way to persuading the duo to stay.

“I’m delighted for the club,” Kennedy told BBC Sport. “Roy Hodgson has persuaded one of the best English players in the game to come in and that will only be good news for the club and for the players the club are looking to hold on to.

“I’m sure Roy and Liverpool can get the best out of Joe again, and hopefully it will result in the club pushing back up the league and targeting silverware again.

“I’ve been an admirer of Joe’s for the last few years. He is a player that excites fans and he is a player that we desperately needed.

This shows we can still attract top name players

Former Liverpool striker Ian Rush

“We know Joe had a lot of options, especially from London, but he’s looked at Liverpool and maybe thought to himself that he is the guy who can resurrect the club after what was a terrible season last year.

“Credit for that has to go to Roy Hodgson, I believe – he is a very persuasive man and a man well respected in football, so that’s fantastic news.”

Another former Red, Ian Rush, believes the signing underlines Liverpool’s ability to still compete for the best players in the world despite not being able to offer Champions League football.

“Liverpool might not have been successful as we would have liked to have been recently but this shows we can still attract top name players, whether that’s an England international or a foreign international,” said the Welshman.

“This is the signing supporters wanted and it’s a big boost for them.

“You look at last season when we went into it not hoping but thinking we were going to win the league. This season people are thinking, ‘Are we going to finish in the top four?’

“I think this sends a sign out to Liverpool supporters that the club do mean business.”

Source: BBC Sport

According to the British media Benitez was paid around 3.0 million pounds ($4.42 million) although he had agreed on a five-year contract in March last year. The terms of that deal stated that the Spaniard was entitled to a severance package of approximately 16.0 million pounds, but with Liverpool almost facing debt, the club would have struggled to pay him off in full.

Rafael Benitez ex-Liverpool Manager

A compromise was reached and the 50-year-old can now look ahead at landing a job at Inter Milan, recently vacated by Jose Mourinho.

Liverpool chairman Martin Broughton said in a statement on the club website (www.liverpoolfc.tv):

“Rafa will forever be part of Liverpool folklore after bringing home the Champions League following the epic final in Istanbul but after a disappointing season both parties felt a fresh start would be best for all concerned,”

Benitez added:

“It is very sad for me to announce that I will no longer be manager of Liverpool FC. I would like to thank all of the staff and players for their efforts.”

This parting of ways wasn’t really surprising after they finished seventh in the Premier League this season, their lowest position since 1999.

Rafa had a successful season 2004-05 and after Liverpool finished second to Manchester United in 2008-09 only four points behind, The Reds were expected to put in a tough challenge this season. However, with the departure of Xavi Alonso and a huge string of injuries, the club fell way behind.

Liverpool also failed to advance from the group stages of the Champions League and even missed qualifying for the Champions League next season.

Chelsea Celebrate their success in the Barclay's Premier League 2009/10

Chelsea’s Drogba tops the Premier League scoring charts with 29 goals.

Chelsea also scored 103 goals this season, reaching the milestone after Tottenham Hotspur since 1963.

The Blues can add to their achievements this season by winning the FA Cup final against Portsmouth, next week.

Carlo Ancelotti has accomplished what was expected of him, in his first season. Nonetheless he will be disappointed not being able reach the Champions League finals.

Nevertheless, the title will still be decided on the final day after Chelsea won 2-0 at Liverpool and Manchester United overcame Sunderland 1-0 on Sunday.  United are 1 point away from the League leaders- Chelsea.

Chelsea face Wigan Athletic at home and United match up with Stoke City in the last fight for the title. Chelsea have an upper hand with a better goal difference. For United to win the League they need Chelsea to lose or draw with Wigan.

Chelsea Coach- Ancelotti, commented after the Liverpool win:

“We deserved to win. We did a fantastic job because there was a lot of pressure on us in this game. Now the team is fit and in good physical condition, good mentality ahead of next week’s game. I always said the title would be decided at the end of the season.”

Liverpool face Chelsea this Sunday and are

in a dilemma since a win over the 2006 Champions would favour their archrivals- United, to seal the Premier League title this season, the bright side being Liverpool can get closer to finishing fourth.

Liverpool faced a sad exit from the Europa League Semi-Final against Atletico Madrid, with a last gasp goal from Diego Forlan.

The club has also been put up for sale by the American owners, which could prove beneficial for the next season.

Salomon Kalou scored a hat-trick, Frank Lampard got two and Florent Malouda and Daniel Sturridge scored one each.

Danny Higginbotham of Stoke City attempts to block Frank Lampard of Chelsea as he shoots for goal during the Barclays Premier League match between Chelsea and Stoke City at Stamford Bridge on April 25, 2010 in London, England.

The Blues have scored 7 the third time this season, previously scoring 7-1 against Aston Villa and another 7-2 win over Sunderland. What is even more interesting is that only 2 of these goals have been scored by the strikers. Coach Ancelloti must be a really happy man, having such depth in his ranks.

Stoke had conceded only 16 away goals all season before Sunday’s match. They weren’t able to attack much and were not much of a threat for Chelsea’s defence. Ashley Cole was back in action after a long time on the sidelines and with Terry suspended, Chelsea didn’t have anything to fear about.

The Blues face the Reds in the next game. It will be a tough outing since Liverpool will try their best to finish 4th in the league. Chelsea will play their final Premier League match this season, against Wigan Athletic on May 9.

Ancelloti commented:

“If we win two games, we are champions. I hope we play against Liverpool like we played today but they will want to fight against us to finish fourth. I think United will be able to win their games (against Sunderland and Stoke) but it is in our hands.”

Man of the moment- Ryan Giggs

Talismanic striker Rooney, missed the game due to a groin injury, however this did not deter the team from giving the game their all.

United are just two games away from their fourth successive Premier League title. They are on 79 points, with Chelsea on 77.

The final half hour saw the most action with skipper Giggs scoring twice and Nani finally coming into his own, scored a killer goal.

A smiling Ferguson commented:

“I think we played well … the most important thing was we kept our nerve.”

“There were no signs of nerves whatsoever throughout the game, it was great to see that at this vital time of the season. We beat the in-form team of the week today, that says a lot for us.”

Essien has been on the sidelines since the finals of the African Nations Cup held in January this year, now his recovery has been stalled with a few complications.

Michael Essien

He told his club website:

“If I can make it in time for the World Cup then great but if not I still have my whole career ahead of me and that is more important than anything.”

“The last thing I want to do is rush back too soon and cause further problems down the line.”

He also added:

“I started doing a little bit of running recently which was a big step forward but that led to some pain. A scan showed I had some bruising so I had to stop running and I am now taking it easy until the bruising dies down. Unfortunately I don’t think I will be making a repeat of last season and may not be returning for the last few league games and the FA Cup final (against Portsmouth next month).”

“As far as Chelsea goes I think my season is finished.”

Manchester United must be thanking the heavens and also Spurs for keeping their title hopes alive.

Jermain Defoe scores from the penalty spot during the match between Tottenham Hotspur and Chelsea at White Hart Lane on April 17, 2010.

United started the day four points adrift of Chelsea and are now just a point behind with three matches remaining. The Red Devils managed a late win over archrivals Manchester City with a last-gasp goal from Paul Scholes.

Chelsea were reduced to 10 men after captain John Terry was sent off in the 66th minute for a second yellow card. Jermain Defoe scored the opener with a 15th minute penalty, after Chelsea captain John Terry was penalised for handling the ball, he later collected a second yellow card.

Gareth Bale hammered in a second just before halftime. Frank Lampard pulled a goal back for the visitors in stoppage time.

Chelsea manager Carlo Ancelotti said:

“We were a little bit down but this is football. The title is still in our hands, we don’t have to be afraid. We have to stay calm and look at the next game.”

The controversies just can’t stay under the carpet for Benitez and Liverpool! Riera recently spoke on Radio Marca, he commented:

“When the coach says nothing to you and you are well, with no physical problems and training well, you cannot help but think it must be something personal.”

He added that he felt Liverpool were a “sinking ship” after a poor season which has seen early exits from the title race, Champions League and FA Cup.

These comments led to his suspension from training and he also missed the game against United.

Rafa has sought to get rid of the player by selling him off to a club in Russia. According to a report in the Daily Mail, Benitez wants to take advantage of Russia’s extended transfer deadline (April 8th) to try and sell him to Spartak Moscow. This would help him recoup part of or the complete £6 million he paid to sign Riera from Espanyol.