Liverpool manager Andoni Iraola has been desperate to bring in defensive reinforcements this summer after the departure of Ibrahima Konate and injury to Joe Gomez.
However, as the Reds seek to splash out on two wingers, the club have resorted to a loan move for unwanted Barcelona defender Araujo.
The 27-year-old Uruguay international will provide much-needed depth and experience in central defence.
He made 38 appearances across all competitions last season and was appointed captain of the Spanish giants following the exit of Marc-Andre ter Stegen in January.
Liverpool have signed a defender who can step into defence and provide cover for the likes of Giovanni Leoni, Jeremy Jacquet and most important Van Dijk who Araujo admits he looks up to.
"We all know what a great player Virgil is. He’s a real reference point for the team and he’s a kind of role model and reference for me personally as well.
“I’m looking forward to lining up alongside him hopefully and spending time with him both on the field and off it as well. I am excited to have that opportunity and enjoy learning from him, playing alongside him. With hard work, I think we can achieve good things together as a partnership and as a defence."
Liverpool are understood to possess a £47m option to sign the South American permanently at the end of the campaign. This means if Araujo performs well alongside Van Dijk, he could stay on Merseyside.
The Reds face Serie A side Como this weekend at Anfield, just one week before they kick off Premier League campaign against Newcastle United at St James' Park.