The striker will remain with Jürgen Klopp’s former club for the duration of the 2019-20 campaign after the transfer was agreed on Tuesday.
Awoniyi initially joined the Reds in August 2015 having starred for Nigeria in the U17 World Cup two years earlier.
The striker has since enjoyed loan stints with FSV Frankfurt, NEC Nijmegen, Royal Excel Mouscron (twice) and KAA Gent.
The 21-year-old scored a total of 14 goals in all competitions in 2018-19, during spells with both Gent and Mouscron.
Awoniyi signed a new long-term contract with Liverpool in the summer of 2018.