The former Merseyside captain believes the £75m price-tag - a world record for a defender - will turn out to be money well spent, especially if it helps to improve the 'Reds' defence, allowing them to maintain their push for Champions League qualification.
"They have brought in a defender and if you look at where Liverpool's problems have been over the last few years, it has been defensively", Redknapp declares.
"It gives them a defensive base they have not had. They need a leader and I have been saying it for a while. I think [he's] going to be a huge success."
He goes on to say: "Defensively they have never had anyone - [Ragnar] Kloaven, [Joel] Matip, [Dejan] Lovren - none of them are that standout centre-back that you look at and who is going to lead from the back, going to be a good talker."
The 26-year-old made his debut in the FA Cup third-round Merseyside derby against Everton last Friday, where he scored a dramatic late winner at Anfield to secure his club's progression.
A big test for the Dutch international will come in the Premier League clash against unbeaten leaders Manchester City on Sunday.