The 29-year-old was left out of Liverpool’s pre-season squads after Al-Ittihad made a £40 million ($51 million) bid for him.
He will join Karim Benzema and N’Golo Kante at Al-Ittihad, one of four clubs controlled by the Gulf state’s sovereign wealth fund.
Fabinho joined Liverpool from Monaco in 2018 and made 219 appearances for the Reds, winning the Champions League, Premier League, FA Cup, League Cup, and Club World Cup.
His departure comes after Liverpool captain Jordan Henderson ended his 12-year stay at Anfield last week, moving to Saudi Arabia to play for Al-Ettifaq, who are coached by Steven Gerrard.
Liverpool manager Jurgen Klopp has also seen midfielders Naby Keita, Alex Oxlade-Chamberlain, and James Milner depart on free transfers since the end of last season.
But the club has reinforced that area of the field with the signing of Alexis Mac Allister and Dominik Szoboszlai.
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