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The 19-year-old is highly-rated in England and Chelsea had big hopes for him but it is believed that Solanke was frustrated with the lack of opportunities at Stamford Bridge which is why he opted to join Jurgen Klopp's, Liverpool.
The 19-year-old striker is out of contract at Chelsea this summer and will move to Anfield on July 1.
Due to his young age, Liverpool will have to pay Chelsea a compensation fee for their part in the player's development, possibly in the region of £2-3 million, which will be decided by a Premier League tribunal.
The teenager made just one senior appearance for the Blues in 2014 and enjoyed a successful spell out on loan at Vitesse Arnhem during the 2015-16 campaign, scoring seven goals in 25 appearances.
Solanke, who is currently in South Korea competing with England at the Under-20 World Cup, will become Liverpool's first confirmed signing of the summer.
Scottish giants Celtic and German superpower RB Leipzig had also been linked to a move for Solanke. Reports had said negotiations over his contract at Stamford Bridge faltered over his concerns about a lack of playing time.
The 19-year-old adds much-needed depth to the Liverpool side who will be playing in the Champions League next season.
Klopp rates him as a player for the long-term future along with the likes of Ben Woodburn, Harry Wilson and Trent Alexander-Arnold.
Liverpool are known as a side who believes in giving opportunities to young players unlike Chelsea and Solanke's future could be extremely bright at the Red half of Merseyside.
Liverpool are expected to be busy throughout the summer and they are also expected to spend big. However, an early addition of a promising player like Solanke will definitely make the fans happy.