Liverpool manager Jurgen Klopp has given his backing to the newly-created sporting director role at Anfield.
Michael Edwards has been promoted to the position after spending five years at the club in various roles.
The 37-year-old will be responsible for overall football development, including player recruitment and transfer negotiations.
"This decision is hugely positive for us and it will make us better and stronger in managing the process of building and retaining playing talent at all age groups," Klopp told the club's official website. "Development is so important and it makes sense to have a position, within the football structure specifically, that focuses on where we can improve.
"It's no secret I like the concept of a sporting director and having worked under this model previously I have found it to be nothing but positive and forward-thinking. Michael is absolutely the right person for this. He has the knowledge, expertise and personality to flourish in the role and I was delighted when he told me he would be accepting the position.
"Importantly, he also has a fantastic team of people around him, who have all played a significant role in putting together the talent we currently have in the first team, development squad and at even younger age levels."
The restructuring of the club will include the departure of chief executive Ian Ayre, who will step down in 2017.