The 32-year-old has joined the Anfield outfit on a free transfer following the conclusion of his Manchester City contract, becoming Brendan Rodgers' fourth summer signing.
The 32-year-old spent four years at the Etihad Stadium after leaving Arsenal in a 12 million pound deal, but made just 13 appearances last term and was excluded from the club's Champions League squad.
Toure arrives at Anfield having won two Premier League titles and three FA Cups during an 11-year stay in England, and the Ivorian says Liverpool's stature in the game made the move an easy decision.
"This means a lot to me," Toure told the club's official website. "Firstly, I'm joining one of the best clubs in England. When I left City it was important for me to stay in England because it's the best league - and to join Liverpool is massive for me.
"I chose Liverpool because of the history and because of the spirit of the team and the people here."
Toure becomes Liverpool's fourth signing of a busy transfer window so far following the arrivals of forwards Luis Alberto and Iago Aspas and goalkeeper Simon Mignolet.
The center back joins the club following veteran Jamie Carragher's retirement at the end of last season.