The 23-year-old becomes the fourth signing of the Brendan Rodgers era, and could make his debut for the club in the Reds’ FA Cup Third Round tie against Mansfield on Sunday.
As exclusively revealed by Goal.com in July, Rodgers had made the England forward one of his top targets over the summer and has now finally got his man.
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“I am humbled and happy to be here,” Sturridge told the club’s official website.
“Brendan Rodgers said he sees me here for a long time - and I also see myself here for a long time. I've not signed here to play for a couple of years and then move on.
“I've signed to be here for as long as possible. It's a humongous club - for me, one of the biggest in the world - and to have the fans and world-class players we have here is amazing."
Prior to the announcement of Sturridge's arrival at Anfield, Rodgers insisted he is perfectly satisfied with the level of backing he has received from Liverpool's owners heading into the January transfer window.
“The support the club will give us [for transfers] will be excellent,” he told reporters.
“The owners have been great and I have no complaints in terms of where we are as a club at this time.”
Sturridge will wear the number 15 shirt at Anfield, previously worn by Jamie Redknapp, Patrik Berger, Peter Crouch and Yossi Benayoun.