The 23-year-old Colombian joins Spanish second division side Andorra on a season-long loan - his seventh in five years.
He joined Liverpool back in 2018 from Colombian club Fortaleza after impressing at the U20s South American Youth Championship.
Arroyo was instantly loaned out to Mallorca on a two-year deal, plying his trade in the B team.
Though after the club decided to cancel the deal, he went on to play for Gent in Belgium, but never made an appearance.
He would then join Mlada Boleslav in the Czech Republic, and Spanish third tier club Salamanca, before then featuring for Spanish side Mirandes during the 2021/22 campaign.
read more on liverpool
Liverpool and Aston Villa target was given seal of approval by Mbappe in big praise
Liverpool duo Alexander-Arnold and Salah show off stunning pre-season physiques
Arroyo spent the 2022/23 season at Alaves in the second tier of Spanish football, making 22 appearances as he helped them to secure promotion to LaLiga.
The central defender, who can also play right-back, recently penned a new deal at Liverpool until 2025, though they could cash in on him before then.
It astonishing to think he is yet to pull on the Red jersey and grace the Anfield turf five years down the line. Though the reason for this is due to the fact he was unable to secure a work permit when leaving his native South America for England.
He could make his debut for Andorra when they face Leganes in their opening match on August 13.
Most read in Football
Rashford signs new Man United contract in double boost for club with Onana deal agreed
Rashford deal, Evans back at Man United as Onana nears move, Chelsea fail in Caicedo bid
Man United transfer news LIVE: Rashford new contract signed, £47m Onana fee agreed
Jonny Evans' short-term deal at Man United could be extended as defender makes return
Jurgen Klopp's Liverpool, meanwhile, are currently in Germany gearing up for their first friendly of the summer against Karlsruher on Wednesday.
The Reds face Chelsea in their opening clash of the new Premier League season on August 13.