Arsenal have completed the signing of striker Olivia Smith from Liverpool in a world-record £1million ($1.3m) deal.

The Athletic reported on Wednesday that Smith, 20, was set to sign for Arsenal after agreeing personal terms and the London club confirmed the news Thursday. The Canada international has signed a four-year contract at the north London club, where she will wear No 15.

Smith was Liverpool’s top scorer last season with seven goals after joining from Portuguese side Sporting CP in July 2024 for a club record fee of €250,000 (£212,000).

The $1.3m fee exceeds the previous record set by Chelsea when they signed USWNT defender Naomi Girma from the San Diego Wave for $1.1m in January, and is the first women’s soccer transfer in excess of £1m.

“It’s a privilege and an honour to sign for Arsenal,” Smith said in a news release. “It’s my dream to compete for the biggest titles here in England and in Europe and I’m excited to get started and contribute to doing that here with Arsenal.

“The atmosphere the supporters create at Emirates Stadium is incredible and I can’t wait to have that behind me now.”

Arsenal head coach Renee Slegers added: “We’ve been impressed by her mentality and character, excelling in two European leagues at such a young age.

“I know she has a level of ambition that matches our own and we’re looking forward to working with her as she continues to grow at the club.”

Liverpool had finished fourth in the Women’s Super League (WSL) and Matt Beard had been named manager of the year when she signed. They could not replicate this success last season as the side finished seventh and Beard was sacked in February.

Smith has played 18 times for Canada since her debut in 2019 (Maria Lysaker-Imagn Images)

“Even back then (when I was a child), I swear, I wanted to win a Ballon d’Or one day,” she said to The Athletic in November 2024 . “I wanted to play in a World Cup, in an Olympics, to play for my national team.

“I could see myself meeting my idols and playing against them.”

Her longstanding ambition complements her move to Arsenal, who claimed their second Champions League title last season with victory over eight-time champions OL Lyonnes in the semi-final and a 1-0 win over Barcelona in the Lisbon final.

Arsenal finished second in the WSL last season behind unbeaten Chelsea, and have been active in the transfer window this summer, making Chloe Kelly’s loan deal permanent from Manchester City, while Smith’s Liverpool teammate Taylor Hinds also joined Renee Slegers’ side following the expiration of her contract in Merseyside.

In 2019, Smith became the youngest ever player to play for Canada, at 15 years old and 94 days, in a 4-0 loss to Brazil.

She has made 16 appearances for the nation’s senior team, scoring three and assisting three, and was named Canada Soccer’s young player of the year in 2024.

(Top photo: Jess Hornby/Getty Images)