The 24-year-old full back has agreed a five-year contract with the Reds paying £10m up front with a further £2.5m in add-ons.
Clyne is the Reds' sixth signing of the summer, following Manchester City midfielder James Milner, Burnley striker Danny Ings, Hoffenheim forward Roberto Firmino, Bolton goalkeeper Adam Bogdan and Charlton defender Joe Gomez.
'I'm delighted and it's a dream move for me to come here and play for such a big club with all of its history. I can't wait to get started,' Clyne told liverpoolfc.com.The right back added on Twitter: 'I'd like to thank everyone at Southampton FC I've had three unforgettable years at the club and I've loved every minute of it. You the fans have been great to me with your endless supporter over the years.
'As soon as Liverpool showed their interest in me, I was happy and just wanted the deal to go through.
'The gaffer has shown a lot of interest in me and this is a place where I can improve as a player, I think. It's definitely a good opportunity to come here and try to fulfil my potential.
'I've played at Anfield before and know what the atmosphere is all about. It's a great atmosphere and will make me rise to the challenge. I'm really looking forward to it and hopefully it can push me on to putting on good performances.'
'I wish the best to the club for the future and everyone I've met on the way it's been a pleasure thank you.'
Clyne will join fellow high-profile new signings James Milner and Danny Ings for the club's tour of Australia and Asia.
The pair officially joined the Reds on Wednesday after their contracts expired with Manchester City and Burnley respectively.
Milner arrives on a free transfer but Ings' age (22) means the Clarets are due compensation and talks are on-going between the two clubs in an attempt to come to an agreement without the need to go to tribunal.
Liverpool confirmed both would be on the pre-season trip for matches in Thailand, Australia and Malaysia.
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