Roy Hodgson has been confirmed the 18th manager in Liverpool's history this morning, having finalised the terms of his departure from Fulham.

The 62-year-old arrived at Melwood, the club's training ground, in time to meet the first batch of players reporting back for pre-season training today and will be publicly unveiled at Anfield at 1.30pm. He has signed a three-year contract to succeed Rafael Benítez, not the two-year deal that was originally suggested as Liverpool look for stability following a turbulent period under the debt-ridden regime of Tom Hicks and George Gillett.

Hodgson was voted Manager of the Year by the League Managers' Association last season, having guided Fulham to the Europa League final, and had to negotiate bonus payments from the Craven Cottage club before completing his move to Merseyside. Liverpool also had to pay a £2.5m compensation clause to release Hodgson from his 12-month rolling contract with Fulham.

"This is the biggest job in club football and I'm honoured to be taking on the role of manager of Britain's most successful football club," said the former Internazionale, Udinese and Switzerland coach. "I look forward to meeting the players and the supporters and getting down to work at Melwood."

Hodgson's appointment has not received universal acclaim by Liverpool supporters, although his European pedigree and success in transforming Fulham's fortunes on a modest budget made him the favoured choice of the Anfield hierarchy.

Liverpool's managing director, Christian Purslow, who Benítez claimed was behind his departure as manager and who led the search for the Spaniard's successor, was the target of graffiti found on the walls of the stadium this morning.

The new Liverpool manager faces a difficult task of reviving a club who finished seventh in the Premier League last season and are beset by financial problems, with the American co-owners' asking price for the club discouraging potential investors. He must also convince Steven Gerrard, Fernando Torres and Javier Mascherano, three leading players whose Liverpool futures are uncertain, to resist any rival offers for their services this summer.