The club announced the news via its Twitter account:
Sky Sports has more details regarding the transfer:
Chelsea striker Daniel Sturridge has signed a long term contract with Liverpool - more on #SSN— Sky Sports News (@SkySportsNews) January 2, 2013
Sturridge's arrival to the team is fantastic news for Liverpool forward Luis Suarez, who finally has a strike partner who can take some of the scoring burden away from him.
Suarez has scored 13 goals during Premier League play, which ranks tied for second among all players. The second-leading scorer on the Reds is veteran midfielder and captain Steven Gerrard with four league goals.
Even though Gerrard is still a top player, he cannot be relied on to score as many goals as he did in his prime.
After Suarez and Gerrard, the only Liverpool players with more than one goal scored in league play are center-backs Daniel Agger and Martin Skrtel. It was clear that manager Brendan Rodgers needed to bring attacking reinforcements to Anfield this month.
Sturridge will ultimately prove to be a fine addition to the squad. The 23-year-old forward has pace, he finishes well in front of goal and he is versatile because of his ability to excel in a striker or winger role.
The expectation is that Sturridge will receive much more playing time at Liverpool than he did over the last few years at Chelsea. If this happens, there's no reason to believe he will fail to reach his potential.
Sturridge has immense talent, and just needs the playing time required to develop his impressive attacking skills.
Rodgers will ensure that Sturridge gets plenty of chances to become a regular member of the starting XI.
To make a move toward a top-four finish this season, Liverpool had to make a major transfer for a striker with goal scoring qualities. The Sturridge transfer should make Liverpool a much tougher club to beat in the second half of the season.