The Merseysiders won the race to sign the right-back ahead of Manchester United, despite Clyne informing the Red Devils in April that he would be eager to move to Old Trafford.
Clyne completed a medical on Monday before officially rubber-stamping his move to Liverpool, with the initial figure standing at €14.7m, and becomes Brendan Rodgers's sixth signing of a busy summer window so far.
The England international, who will replace soon-to-be-free-agent Glen Johnson, follows Roberto Firmino, James Milner, Danny Ings, Adam Bogdan and youngster Joe Gomez in moving to Anfield.
Rodgers has embarked on a massive recruitment drive as he bids to reverse the Reds' fortunes following a disappointing 2014-15 campaign, with a rebuild needed even more after Steven Gerrard's departure to LA Galaxy and the potential sale of Raheem Sterling to Manchester City.
Clyne has emerged as one of the stand-out defenders in the Premier League and was part of a defensive unit that conceded just 33 goals last season, keeping 15 clean sheets.
His strong form saw him called up to the England team by Roy Hodgson in 2014, making his international debut in a 3-1 victory over Slovenia.
Southampton have already brought in a replacement for Clyne, who was set to be out of contract next summer, with Portuguese right-back Cedric having joined from Sporting at the start of June.
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