The club has resigned Robbie Keane, six months after he left the club for £20.3.
The deal, believed to be in the region of £15m, sees the club make a profit of just over £5m from the deal that saw the forward join his boyhood team in July.
Keane scored just seven times in 28 appearances under Rafa Benitez and was forced into considering his future at the club after being left out of several high profile games.
"It was a difficult decision to make to leave Tottenham in the summer," the 28-year-old told the club's official website.
"It proved not to be the right move for me. I know some fans will feel I let them down...but I can assure them I'll be giving my all."
Keane failed to establish himself under Benitez and there was even a suggestion in recent days that his transfer had not been sanctioned by the Spaniard but his departure certainly leaves Liverpool light of forwards, especially if Fernando Torres continues to have an injury prone season.
"We never wanted Robbie to leave in the summer, we acknowledged the six years of dedicated service he gave this club and reluctantly let him go," said chairman Daniel Levy.
Levy said he is delighted the Republic of Ireland captain chose to return to the club, but, in effect, Keane has been forced out of Anfield after it was made clear to him that he was not in the managers plans.
"We can all recall the passion and fight he displayed during his previous seasons with us," Levy added, "I know he is determined to give us his full commitment."
Keane made 254 appearances during his first spell with the club, scoring 107 goals.
He becomes the third player Harry Redknapp has brought back to White Hart Lane this month, following the signings of Jermain Defoe and Pascal Chimbonda, leaving some fans wondering if they might one day see Dimitar Berbatov is being lined up for the summer transfer window.
Let's face it, it's him or Teddy Sheringham.