Hibernian can confirm that manager Colin Calderwood has brought in his fourth new signing of the transfer window with the arrival of Iceland under-21 internationalist Victor Palsson from Liverpool.

Palsson follows in the footsteps of Matt Thornhill, Martin Scott and loan recruit Richie Towell by joining Hibernian in January, and has signed a deal until the end of season 2011/2012.

The 19-year-old midfielder, who can also operate in defence, says he is thrilled at the prospect of playing at Easter Road again - after playing at the stadium in October.

Palsson said: "I played for Iceland under-21s against Scotland at Easter Road a few months ago and I was really impressed with the atmosphere; it is a special stadium.

"As soon as I was aware of Hibernian's interest, I was really keen to join the club and to work with the manager; it is a really exciting move for me.

"I believe the Scottish league will suit my way of playing and I am looking forward to playing for Hibernian.

"Edinburgh is a great city and everything about the move indicates it is the right decision for me."

After graduating from Liverpool's Academy, Palsson has been a regular in the club's reserve side and also gained experience while out on loan at English League Two side, Dagenham and Redbridge.

Boss Calderwood believes Palsson has a lot to offer the team; both in the short term and in the longer term.

Calderwood said: "Victor is a young player with terrific potential and a player, who has been on our radar for a long time.

"He has got a great pedigree and we are pleased to be able to bring him to the football club."

An exclusive chat with new signing Victor Palsson will be aired this evening on Hibernian TV (click here to subscribe to the club's official online TV channel)