The 21-year old defensive midfielder has penned a three-year deal, with the option for a further 12 months, for an undisclosed fee.
England U20 international Coady has been with Liverpool since 2005 when he joined the academy as a 12-year old but has moved on after making just two senior appearances for the Reds.
Coady spent last season on loan with Sheffield United, scoring six goals in 50 appearances.
Huddersfield Town (@htafcdotcom) August 6, 2014
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