Crystal Palace have signed defender Mamadou Sakho on loan from Liverpool for the rest of the season.

The clubs had been in negotiations over a permanent transfer but Palace were unwilling to meet Liverpool's asking price for the centre-half, reported to be £20million.

An agreement for a loan deal was reached just before the transfer window closed at 11pm on Tuesday, which it is believed will see Palace pay a £2million loan fee as well as fund the player's full wages during his stay at Selhurst Park.

Sakho was a regular at the heart of the Reds' defence last season alongside Dejan Lovren but he has not featured for the first team since April and has been out of favour with manager Jurgen Klopp following misdemeanours during pre-season.

The France international was sent home from the club's summer tour to the United States for ill-discipline and has spent much of this campaign turning out for the Under-23 side.

He was reportedly withdrawn from a reserve match this month because the club were concerned about the risk of an injury jeopardising a potential sale.

The 26-year-old recently revealed the details of his fall-out with Klopp and accepted he has made mistakes.

"It is true that I turned up late. There was a rule that I should have observed. I do not at all see myself as above the rules, I respect everyone," he told Canal Football Club.

"I paid my fine, I was sanctioned, I apologised to my team-mates and my manager. Aside from that... I do not want to go into the controversies."

Palace also completed the signing of midfielder Luka Milivojevic on Tuesday from Greek club Olympiacos.

The 25-year-old Serbia international told the club's official website: "I'm very excited to come to Crystal Palace and very excited to play in the Premier League, which is one of the best leagues in the world.

"I will try to do my best to give my best for the team and to adapt to the league and my new team as fast as possible.

"I'm a defensive midfielder, I'm the one who tries to control the game and bring balance to the team," he said. "I will try to do my best and bring my qualities as soon as possible.

"This year I've scored six goals in 17 games - which is a little bit strange for me! I've been a success this year [at Olympiacos]. In the league I've played nearly every game, I've only missed one and that was [due to suspension] because of the cards."