Aurelio left the Reds when his contract expired at the end of May after rejecting a pay-as-you-play deal at Anfield.
The Brazilian has now signed a two-year contract with Liverpool after impressing new manager Roy Hodgson.
Aurelio told the club’s official website: “I feel very pleased and proud. It feels like I am signing for the first time – everything has changed so it is like a new beginning for me with new confidence and a new boss.
“Hopefully I can do well this season.”
He added: “My aim is to help the team do better than last season. Everything is going really well, so I think we can progress a lot.
“We have made some good additions to the team and we can be very confident.”
