The 24-year old Uruguayan defender has signed a four-year deal with the Black Cats for an undisclosed fee, believed to be in the region of £2million, following his successful loan last season.
Coates arrives at the Stadium of Light having spent four years at Liverpool where he enjoyed a loan spell with former club Nacional before his stint on Wearside.
“Sebastian was an important part of the team under Dick last season and we are delighted that he has joined us on a permanent basis," sporting director Lee Congerton told the club's official website.
“He has Barclays Premier League experience, which is important and, after spending last season on loan with us, he will be able to settle into the team very quickly."
#SAFC are delighted to confirm the signing of @SebastianCoates from @LFC on a four-year deal. #hawaytheladspic.twitter.com/4S6A5eeMfI
— Sunderland AFC (@SunderlandAFC) July 1, 2015
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