ATHENS (AFP) - Liverpool midfielder Sebastian Leto on Tuesday completed a two-year loan deal with Greek champions Olympiakos after being denied a work permit to play in England next season.

Leto arrived from Buenos Aires team Lanus in 2007 and made four appearances for Liverpool last season while on an Italian passport but that was later revoked by the Italian Government.

"Olympiakos is a major team, a big club and I believe that it is very significant for my career to be a member of the team which will be playing in the Champions League," the 21-year-old said.

Leto said that Liverpool coach Rafael Benitez had wanted to keep him on the English side and was disappointed at the outcome of losing him because of work permit difficulties.

"I believe I'm ready to help Olympiakos and to follow my coach's orders. I believe I will adjust to the team quickly," Leto said.

On Tuesday, Leto completed medical exams without any problems and will join practice with his new teammates for the first time on Wednesday.