Daniel Sturridge said moving to West Bromwich Albion was "the right fit" after joining on loan from Liverpool for the rest of the season, with boss Alan Pardew calling it "a coup."
England international Sturridge has been allowed to leave Anfield until the end of the campaign after scoring just three goals in 14 first-team appearances this season.
Sources told ESPN FC West Brom won the race for his signature after agreeing to pay Liverpool a £2 million fee as well as the player's wages of £120,000 a week.
Sturridge, born in Birmingham, told the official West Brom website: "There were many things in deciding on this move.
"The manager spoke very well when we talked about the challenge with the team, there was the style of play, and this feels like it was the right fit at the right time.
"I've got some friends here who are West Brom fans, so I can't let them down as much as any of the Albion supporters.
"Coming here, I'm back home. When I've played here, it had a home feel for me. I'm seeing faces in the stands that I've known growing up.
"It's a good feeling for me being here. I want to enjoy myself as much as I can -- but getting results is our first priority."
West Brom boss Pardew said the signing of Sturridge was "a coup" for the club.
He added: "I hope our fans can understand that we are fighting to stay in the Premier League, not just on the pitch but in the market place as well.
"This is a big coup for us and I speak for my staff and my players and say thank you to Daniel for agreeing to assist us in league and cup.
"He has fantastic talent and will strengthen our ambitions on both fronts."