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James Milner is a good signing for Liverpool Richard Heathcote/Getty Images

Former Liverpool midfielder Gary McAllister believes that James Milner will be a potent signing for the Anfield club in their bid to reclaim a Champions League place next season.

The Reds fended off interest from Manchester United and Arsenal for his signature after the player refused to extend his contract with Manchester City and was available on a free transfer. The England international was Liverpool's first signing this summer and manager Brendan Rodgers followed that up with a deal for Danny Ings from Burnley to spruce up the Reds' attack.

Milner will add some much-needed experience to Liverpool's midfield after the departure of Steven Gerrard to the MLS. The player is known for his ability to play in different positions, at full-back and on the wings and will give Rodgers much-needed versatility to cope with injuries.

"I think it's a very good signing," McAllister said, as quoted by the Liverpool Echo.

"James Milner is the type of player most clubs in the top half of the table, the teams that have qualified for the Champions League, would all be delighted to get on their books.

"He's a quality player, he can play in three or four different positions and he's a very experienced international footballer.

"There is good experience within the Liverpool team but adding someone like Milner, who has played at World Cups, played at European Championships, he'll be able to go and cope with the atmosphere at Anfield.

"I'm sure he'll enjoy it. He's a Leeds boy and I think Anfield is a place he's really going to enjoy. He's had the pressure of playing at Manchester City when they've been expected to win championships with the money that they've spent.

"But the history and tradition at Liverpool makes it just a little bit different. There is that expectancy but there's also an emphasis on doing it with a bit of style or a bit of cleverness, and I think that something that James can bring."