The 24-year-old Southampton defender had been linked with a move to Anfield for several weeks now and has finally put pen to paper on a £12.5m deal after completing his medical on Monday.
"I'm delighted and it's a dream move for me to come here and play for such a big club with all of its history," Clyne told the official site. "I can't wait to get started.
"I've played at Anfield before and know what the atmosphere is all about. It's a great atmosphere and will make me rise to the challenge.
"I’m really looking forward to it and hopefully it can push me on to putting on good performances."
He is the fourth Saints player to make the move to Liverpool in the last year, following Rickie Lambert, Adam Lallana and Dejan Lovren out of St Marys.
Clyne becomes the club's sixth signing of the summer, with rumours that Christian Benteke could well be the next very shortly.
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