The Croat will not be joined at Anfield by Loic Remy, however, after the French striker's proposed move from Queens Park Rangers was called off as a result of concerns over the his medical. He was examined in the US, where Liverpool are on tour.
The day would still end on a positive note for Brendan Rodgers, since the Liverpool manager was able to ratify the deal for Lovren. The move could have repercussions in Scotland as Southampton were reportedly prepared to make an offer for Celtic's Virgil van Dijk should they lose Lovren. The Scottish champions are thought to want £10m for the Dutch defender - who would team up with compatriot Ronald Koeman at St Mary's - but the English club are flush following the sale of Lovren, Adam Lallana and Rickie Lambert this summer, all to Liverpool.
The Anfield club were prepared to pay £8m to add Remy from QPR too, with personal terms understood to have been agreed. It was thought initially that problems with paperwork had caused a delay to the transfer being finalised, but it now appears it will not go through at all because of Liverpool's worries with Remy's physical condition.
Meanwhile, Arsenal announced the signing of Colombia goalkeeper David Ospina from Nice on a long-term contract. The 25-year-old, who impressed as Colombia reached the quarter-finals of the World Cup in Brazil, has moved to Emirates Stadium for an undisclosed fee.
"David Ospina is an excellent goalkeeper, with good experience and a proven record of performing with Nice and Colombia," said Arsene Wenger, the Arsenal manager.
Ospina is expected to make his first appearance during the Emirates Cup friendly tournament, which takes place in north London next weekend. He made 189 Ligue 1 appearances over six years with Nice having joined the south coast club from Colombian club Atletico Nacional in 2008. Claude Puel, the Nice coach, was full of praise for his departing player. "David Ospina can take the goalkeeping position at Arsenal because his qualities are very strong and . . . 'magnifique'."
Another player expected to move to Emirates is Southampton defender Calum Chambers, with a £16m deal understood to be under discussion.