The signing of Gakpo from PSV is a coup for the Reds.
The forward, who scored three goals in five appearances at the World Cup, will be paid 35 million dollars by the Reds.
Gakpo, who underwent his medical on Wednesday, is understood to have agreed a deal until 2028, with his transfer subject to a work permit.
On New Year's Day, when the transfer window opens, he could make his debut for the Reds on Monday Night Football.
The club was not going to sign a forward in January due to injuries to Diogo Jota and Luis Diaz, but interest from other clubs caused them to accelerate their interest.
Reports suggested that Manchester United were considering a move for Gakpo in the upcoming January transfer window, despite their interest in him in the summer.
Gakpo is a multi-functional attacking player who is more than capable of filling any of the roles in the front three, according to the man who has been admiring him for a long time.
The priority will be to expose Gakpo to the first team environment and involve him in as much training as possible before considering him for competitive action.
The reconditioning of World Cup returnees is something that has been dealt with byLiverpool.
Gakpo said that he was excited to be here. I can't wait to start training and playing for this amazing club. The club is a great place for me to come in and show what I can do and help the team achieve more beautiful moments. There's a lot of great players here and I can learn a lot from them.
The transfer was approved by the owners of the club and they were happy to use it to strengthen the squad.
After three days of talks with PSV, the transfer was finalized by the sporting director.
Peter Smith works for Sky Sports.
During the World Cup, Netherlands boss Louis van Gaal said "Cody Gakpo has everything it takes to become a star" and the forward certainly looks like he is on the fast track to the top of the game.
In each of the group stage games, he scored with his head, left foot, and right foot. He excelled as a centre forward or No 10 that moved to the right. He has excelled as a left-winger at PSV.
Gakpo has hired a personal tactics coach to analyse his game in order to improve his skills. Extra homework is paying off for his club as his goals and assists-per-90 minutes stat shows.
His league-topping tally of goals and assists won't be as important as his mentality. Gakpo is at a high level and determined to get better. He's an attractive investment.
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Gakpo has all the attributes required of a modern forward.
Sky sports' Joe Shread.
As illustrated above, Gakpo'sVersatility, professionalism and output on the field explain whyLiverpool have decided to make their move for the PSV andNetherlands forward.
There are other elements that make up the equation. It's tempting to think that Gakpo is going to sign for the Reds because of Manchester United's reported interest, but it's more likely that injuries are the reason for the move.
He described the news as a "proper smash in the face".
Diogo Jota is expected to be out until February due to a calf injury, while there is no official timetable on the return of theColombia winger. Roberto Firmino is also out with an injury.
As a result, the options for the Reds' forwards are reduced. Alex Oxlade-Chamberlain made a rare start in the front three during the 3-1 win at Aston Villa on Boxing Day, while other players can also line up.
With so many players injured, the need to add to the forward options was obvious.
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The potential for Gakpo to do something similar after he arrived from Porto in the previous January window was too big of a deal to ignore.
"You don't expect miracles immediately from these kind of players," he said. He is close to doing that.
Gakpo's performances for PSV and the Netherlands suggest he could provide a crucial boost forLiverpool in the second half of the season
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