"Andy Carroll has completed his move from Newcastle to Liverpool and has signed a five-and-a-half-year-deal," read a Liverpool statement.
The 22-year-old will wear the number nine shirt vacated by Fernando Torres, who has sealed his move to Chelsea.
Carroll has scored 11 goals in 19 league games this season and made his full England debut in November.
Newcastle confirmed that Carroll's transfer request was "reluctantly accepted" on Monday afternoon, and his move was finalised shortly before the transfer deadline (2300 GMT).
Liverpool have also signed Ajax striker Luis Suarez for £22.7m fee, but recouped about £50m of their transfer-day spending by selling Fernando Torres to Chelsea.
Academy graduate Carroll played a key role in the Magpies' promotion from the Championship last season and had continued to shine since being handed the club's number nine shirt during the summer.
Newcastle boss Alan Pardew had repeatedly stated that the player was not for sale but the club's owner Mike Ashley and managing director Derek Llambias has tried to bring a financial realism to the club during their time at the helm.
Carroll is currently out of action with a torn thigh muscle which has kept him sidelined for the last five games and which prompted his visit to a specialist in Sweden on Friday.
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