The 16-year-old reportedly joins the Reds on a three-year deal.
The 16-year-old right-back had been on the books at Manchester City, but his release from the Eastlands club is said to have alerted a host of Premier League clubs.
Norwich City, Stoke City and Aston Villa are said to have been interested, along with the Reds' Merseyside rivals and the Black Cats, but the Liverpool Echo report that Lattie - a boyhood fan - has elected to join the Anfield club.
The report goes on to suggest that the youngster has penned a three-year deal and will move into Liverpool's Under-18 side for pre-season training this summer.
He is also an Under-17 England international and, although still young, his reported arrival will be welcomed by fans - especially if they beat out the Toffees for his signature.
Lattie will be hoping that his career takes a similar trajectory to Jon Flanagan's, with the 23-year-old living the dream by representing his boyhood club, though he is behind Nathaniel Clyne in the pecking order at right-back.