The 37-year-old, who has previously held posts as head of analytics, director of technical performance and technical director, will oversee the "club's overall football development", a position which will see him take a key role in the Reds' future transfer activity.
The move has also been welcomed by manager Jurgen Klopp, who worked under a sporting director at previous club Borussia Dortmund and is an advocate of the model.
