The Englishman moves to Anfield for a fee reported to be in the region of £12 million.
“I have known Daniel since he was 12 at Coventry and then coming through the ranks at Man City. He can score, he has pace and power”, Liverpool coach Brendan Rodgers told the BBC.
“He is also hungry and what we need at Liverpool is players hungry to do well. He recognises this might be his chance at a big club and he has to produce. I am looking forward to working with him.”
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.