"I've worked with other Argentinian defenders in the past and there is a good tradition of tough, aggressive and tactically strong defenders from the country," said the Liverpool manager.
"Paletta is very tough and he's exactly the sort of player we need who will suit the Premiership. When you talk about the Argentinian defenders I worked with in Valencia, Paletta is more like Ayala than Pellegrino. If you're talking about Liverpool, he's more like Carra than Sami Hyypia. This is good because we will have a balance in the style of defenders.
"He is a defender with a lot of aggression and we're sure he has a great future. He will learn a lot here, like Daniel Agger, and provide competitiveness in our defence.
"We were watching him in the world under-21 championships in Holland recently. That's when our scouts spotted him and we identified him as the kind of player we'd like.
"He has attracted a lot of interest from top clubs in Argentina like River Plate and Boca Juniors. River Plate even reserved a number six shirt for him, so we had to move quickly to sign him. We're delighted to have done the deal now."