The Reds have signed the 20-year old Serbian winger from Portuguese club Benfica on a long-term deal for around £20million.
Markovic lands at Anfield after spending just one season with the Portuguese champions following his June 2013 move from Partizan Belgrade.
"I am very happy that I have joined such a great club," he told his new club's official website.
"I hope that I will fulfil the expectations of the supporters, coaches, players, and all connected to the club.
"I have seen what the players are like, I have seen what the supporters are like, and I cannot wait to start playing here.
Markovic becomes Liverpool's fourth signing ahead of the 2014/15 season following striker Rickie Lambert), midfielder Adam Lallana (both from Southampton) and German midfielder Emre Can (Bayer Leverkusen).
Liverpool FC (@LFC) July 15, 2014
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