Insua is part of the exciting Argentine Under-20 side who are currently world champions at their level, and his arrival is part of an ongoing strategy by Rafa Benitez to recruit elite youngsters from across the world and provide a stable foundation for the future of the club.
Chief scouts Frank McParland and Eduardo Macia have been entrusted to scour the globe for potential stars of the future.
Insua comes into that category, having been spotted excelling for his country's youth team, and there are expected to be more recruits in the New Year.
Manchester United, Chelsea, Real Madrid and Barcelona were tracking Insua, but Liverpool were the first to show an interest in the teenager, prompting him to reject recent moves from Stamford Bridge and Old Trafford.
There are those at Anfield who believe Insua could challenge for a first team spot before the end of this season, and will certainly be an option in time for the 2007-08 campaign.