Aurelio put pen to paper on a two-year deal just weeks after being released by the club having been unable to agree terms over a new contract.
The Brazilian spent part of last week training under new manager Roy Hodgson at Melwood, and impressed sufficiently to earn a second stint at the club.
And a delighted Aurelio said: “I feel very pleased and proud. It feels like I am signing for the first time – everything has changed so it is like a new beginning for me with new confidence and a new boss. I have been working for a while by myself since the end of my contract and trying to keep fit in pre-season, so I think I am in good condition.
“My aim is to help the team do better than last season. Everything is going really well, so I think we can progress a lot.
Aurelio travelled with the Liverpool squad to Germany for yesterday's friendly against Borussia Moenchengladbach and emerged as a second-half substitute in the 1-0 defeat.
Hodgson made the move to bolster his squad's problematic left-back position.
“I asked the club to find out whether Fabio had found a new club,” said the manager. “When we ascertained that he hadn't, we invited him back to Melwood so both myself and my staff, and the medical team could properly assess the player.”
Another surprise in Germany saw a starting role for Emiliano Insua.
The Argentina international had been expected to move to Fiorentina after Liverpool agreed a £5million fee for the defender.
But Insua has thus far failed to agree personal terms with the Serie A outfit and returned to Merseyside, where he will continue to be considered for selection.
With Javier Mascherano edging ever nearer an Anfield departure, another player in Liverpool's sights is Juventus midfielder Christian Poulsen.
Although Hodgson yesterday refused to speak about the 30-year-old Denmark international, the player's agent, Jorn Bonnesen, confirmed talks have been ongoing about a possible transfer. “Christian has a great deal of respect for Roy Hodgson, most definitely,” said Bonnesen. “They've been keeping in touch.
“Roy Hodgson has been interested in bringing Christian to some other clubs where he's managed, so he's been speaking to him on several occasions.
“It's not unthinkable, but nothing is certain.”
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