The Nigerian youngster is to be sent out on loan because he does not currently possess a work permit.
It was reported by Star Africa that Liverpool had won the race for the 17-year-old, beating Manchester City, AS Monaco and FC Porto to his signature. The attacker recently impressed for Nigeria at the Under-20 World Cup in New Zealand.
However, at this point in time, he has no place in the Liverpool first-team and is also without a work permit to play for a living in the UK.
With that in mind he will be loaned out by The Reds, with a Dutch team set to snap him up.
The teenager, who was previously with the Imperial Soccer Academy in Nigeria, will spend the campaign with the club who have fellow Nigerian Bartholomew Ogbeche at the club and recently signed Jack Bryne on loan from Manchester City.
The club are known for their exciting style of play and have recently snapped up Swedish talent Valmir Berisha.
Awoniyi will get a good football education at the club and Liverpool will then hope to have a talent ready to mould back at Melwood next summer.