The 22-year-old winger, who arrived at Stamford Bridge from Wigan last season, joins defenders Mamadou Sakho from Paris St Germain and Tiago Ilori from Sporting Lisbon as new arrivals on the final day of the transfer window.
Victor Moses has become the third player to join Liverpool on Monday, with the forward signing on a season-long loan from Chelsea, the Premier League club confirmed.
The 22-year-old winger, who arrived at Stamford Bridge from Wigan last season, joins defenders Mamadou Sakho from Paris St Germain and Tiago Ilori from Sporting Lisbon as new arrivals on the final day of the transfer window.
The Nigeria international scored 10 goals in 42 appearances for Chelsea but faced a challenge to get game time following the arrivals of Brazil playmaker Willian, German Andre Schurrle and veteran Cameroon striker Samuel Eto'o.
"There are a lot of quality players here - they're winning games and creating chances," he told the club's official website (www.liverpoolfc.com).
"It's a massive thing for me to be here." The 23-year-old Sakho is a France international, having played 14 times for his country since making his debut against England in 2010, while 20-year-old Ilori has played for Portugal at age-group level.
The pair have lifted the number of defenders signed by Brendan Rodgers during the transfer window to four, although Kolo Toure and Aly Cissokho missed Sunday's 1-0 win over Manchester United through injury.
Uruguayan centre-back Sebastian Coates has already been ruled out for most of the season with a knee injury.
"I know the history of the club and the Premier League is the best league in the world, in my opinion," Ilori, who was born in London, told the club's official website.
"Liverpool, have a great team and I think it's the place for me to be at the moment. I know there have been some great teams here in the past and the club has won a lot of trophies and I want to be a part of it."
No fees were disclosed for the players, who join Toure, Cissokho, Iago Aspas, Luis Alberto and Simon Mignolet as new arrivals at Anfield since the end of last season.
"My aim while I am here is to play in the Champions League with Liverpool," Sakho, who made 151 league appearances for PSG, scoring seven times, said.
"I remember their teams when they were in the competition when I was younger. The Champions League is a tournament that all the great clubs in Europe participate in and that's where we need to get to."
Liverpool top the Premier League standings with three wins from as many matches to start the campaign.
(Reporting by Josh Reich; Editing by John O'Brien)
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