Vignal, 19, was a guest at Anfield to watch Robbie Fowler score five in the reserves' 8-0 thrashing of Bradford City and went onto talks with the club before passing a medical.

"We are delighted to have signed Gregory," said manager Gerard Houllier.

"We have been watching him over a number of games.

"He will spend time working with the rest of the squad and playing for the reserves, but when the time comes for us to promote him into the team, we will."

Vignal was part of the French team which emulated their senior counterparts by winning the European U-18 Championship in Germany this summer.

He was sent off in the shock opening defeat by Finland, but France recovered, and he returned to set up the only goal in the final against the Ukraine.

Prompted

Vignal was prompted to move by the huge interest in his services, and Montpellier's relegation from the top flight last season.

He said: "I chose Liverpool because they are a big club and they appeal to me because they have a French manager and coach.

"Houllier came to watch me play two or three times and was especially interested in the U-18 championships where we did so well.

"Celta Vigo, Valencia and Paris St Germain all talked about signing me, but I'm interested in English football and the style of play here, and I'm sure I can do well."