Aston Villa have announced the signing of Philippe Coutinho from Barcelona after his successful loan spell, with the fee understood to be €20m (£17.2m). Coutinho has been with Villa since January and the opportunity to continue working under Steven Gerrard was key to the 29-year-old’s decision to accept a contract to 2026. Barcelona have a 50% sell-on clause as part of the agreement. It is understood Coutinho has accepted a drastic cut in wages from his previous contract at Barcelona in order for Villa to accommodate the midfielder into their wage structure. Villa’s highest earners, one of whom is thought to be Danny Ings, earn around £125,000 a week. “This is a brilliant signing for Aston Villa,” Gerrard said. “Phil is a model professional and his impact on the group has been very clear since he joined in January. With the way he conducts himself on and off the pitch, he’s also a valuable role model for our younger players who can only benefit from his experience.” Coutinho joined Barcelona from Liverpool, where he played alongside Gerrard, for an initial £106m in January 2018 but the move did not work out and he spent the 2019-20 season on loan at Bayern Munich. Payment terms were the final element settled in negotiations between Barcelona and Villa, whose work in sealing the transfer was praised by Gerrard. “As we look to build towards next season, it is incredible to work at a club that executes its business so decisively and smoothly,” he said. Coutinho has played 16 times for Villa, scoring four goals and providing three assists, although all of those came in his first eight appearances.