Wilson was on loan at Hull City during the second half of last season, where he managed seven goals to help the team avoid relegation.
Now he is hoping that a full season at Derby will elevate his game to another level. And he will be managed by an England legend in Frank Lampard.
"I was delighted to sign the new deal. To sign a new deal with a club as big as Liverpool was brilliant for me," Wilson explained to RamsTV.
"I sat down with the right people and discussed what they felt would be best for me this season; we decided that a loan move would be.
"Derby were one of them and come the end of it we decided this would definitely be the right place for me."