Crystal Palace will have to pay £2m loan fee to Liverpool for the 26-year-old French defender who did not make a single start in the ongoing season.
Both Liverpool and Crystal Palace confirmed the move via their official Twitter handle.
Liverpool's tweet read:
Mamadou Sakho has completed a loan move to Crystal Palace.https://t.co/60MiUK6pMo— Liverpool FC (@LFC) February 1, 2017
Crystal Palace's tweet read:
Crystal Palace's official statement on their website read: "Crystal Palace Football Club are pleased to announce the loan signing of Mamadou Sakho from Liverpool until the end of the season."
The defender made a total of 80 appearances for Liverpool since joining them in 2013. He was one of the club's very important player until this season when he had a fall-out with manager Jurgen Klopp.
During the pre-season tour of Liverpool in the USA, Sakho allegedly used to come late to practice and miss flights regularly.
This unprofessional behaviour angered Jurgen Klopp who had sent him back to England. Sakho after that never got a chance to represent the Reds this season.
While Sakho's behaviour was clearly unprofessional and he deserved punishment, Klopp could have kept the player in the squad given the fact how poor the Reds defenders have performed so far this season.