After a sensational day of drama on transfer deadline day, the Reds have confirmed the 22-year-old has signed a five-and-a-half-year deal at Anfield.
The Reds were initially said to have made a £30 million bid for the player on Monday morning, which was promptly rejected by Newcastle.
A second offer of £35m plus add-ons was also initially said to have been rejected, but Carroll then decided to hand in a transfer request to force through the move and the North East club reluctantly accepted the proposal.
A statement on the club’s website said: "Andy Carroll has tonight completed his transfer from Newcastle United to Liverpool FC and signed a five-and-a-half-year deal that will keep him at Anfield until 2016.
"The club agreed a record transfer fee with Newcastle earlier in the day for the transfer of the England international striker.
"The deal was subject to the completion of a medical, which the player has now passed.
"Andy Carroll will wear the No.9 shirt for Liverpool."
The former Newcastle forward will be expected to team up with fellow new signing Luis Suarez, who has joined the club from Ajax, in a new-look strike-force under Kenny Dalglish.
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Carroll has burst onto the scene in the Premier League this season, netting 11 Premier League goals in 19 games and scoring a hat-trick against Aston Villa in August.
He made his international debut for England against France at Wembley in November.
Carroll’s sale will come as a bitter blow to Newcastle fans, who had idolised the powerful front-man and repeatedly heard assurances from the club that a January sale would not be sanctioned.
The striker is yet to play in 2011 due to a thigh injury, but he has passed a medical and is now officially a Liverpool player.