Liverpool swooped in late on Wednesday night to trigger the Mallorca winger's €40 million release clause after he looked set to join Newcastle United for €30m.
Fabrizio Romano has since revealed that the Reds have successfully hijacked Newcastle's transfer for the 22-year-old, and he has signed a six-year contract at Anfield.
Munoz is currently on World Cup duty with Spain, earning a call-up into Luis de la Fuente's squad after an incredible campaign with Mallorca.
The fleet-footed Spaniard recorded 12 goal involvements in all competitions last term, impressing supporters with his directness and incisive dribbling.
An exciting player to watch and capable of playing on either flank, Munoz has the potential to light up the Premier League, and Liverpool supporters will be looking forward to seeing him in action.
Iraola also has a track record of developing youngsters into high-quality stars, and Munoz is set to benefit from his tactical expertise and impeccable man management.