The Reds will receive a guaranteed £9m, with a further £4.5m worth add-ons and a 15 per cent sell-on clause also negotiated.
Hoever had two years remaining on the contract he signed following a move from hometown club Ajax in the summer of 2018.
However, a desire for regular first-team football and interest from both Juventus and Atletico Madrid are believed to have convinced him to seek a move away from Anfield this summer.
With opportunities at centre-back unlikely to arise and Neco Williams established as back-up to Trent Alexander-Arnold on the right-hand side of defence, the 18-year-old’s chances of playing on for the champions this term appeared slim.
By contrast, Nuno Espirito Santo sees the teenager as an ideal fit to play either on the right of his preferred back three, or as a wing-back following the departure of Matt Doherty.
Liverpool did not wish to lose a player who remains highly regarded at Melwood, but were convinced by the financial package offered by Wolves and their clear plan for the player’s development.
Hoever made four senior appearances for the Reds in total, all of those coming in the domestic cups.