He agreed a season-long move to Tynecastle Park after undergoing a medical on Monday morning. He is now in line for a Hearts debut against Dundee United at Tannadice this weekend.
The 21-year-old verbally agreed terms with Tynecastle officials last week but had to wait for the Liverpool manager Jurgen Klopp to authorise his exit.
An initial short-term loan until January was discussed, however the Anfield club gave Woodburn permission to stay in Scotland until next summer.
His arrival strengthens Hearts’ attack given he is able to play in a traditional No.10 role behind the forward line, or as a winger on either flank.
He is keen to play more frequently at first-team level having found himself on the periphery of the Liverpool squad recently. Woodburn previously had spells on loan at Sheffield United, Oxford United and Blackpool.
Hearts manager Robbie Neilson told the club website: “I’m really pleased that we’ve got this one over the line. Ben is a top-class player with Premier League and international experience and he was really eager to join us.
“He’s an exciting player, one who I think will fit really well into our style of play. He’s quick, direct and can bring us different options in the final third. I’m looking forward to working with him and I hope that he will be a success here at Hearts.”
Joe Savage, Hearts’ sporting director, added: “Everyone is delighted to get Ben on board for the season, and I’d like to thank Liverpool for their help in getting this deal done.
“Ben’s development has been in an environment where he was surrounded by world-class football players, so to have him here at Hearts is very exciting.
“We’ve always said we wanted to bring in quality over quantity and I think this signing is another example of that. I’m looking forward to seeing what Ben can do in a maroon shirt and I hope that the fans enjoy watching him play.”
Hearts are also awaiting news on a UK visa application to sign the Australian midfielder Cameron Devlin from Newcastle Jets.
However, Neilson has already declared an intention to recruit more players before the transfer window closes at the end of the month.
He named only six substitutes for Sunday's 1-1 Premiership draw with Aberdeen and three of those – Euan Henderson, Connor Smith and Aidan Denholm – are young players he plans to send out on loan.
Neilson is looking at a number of different positions in an effort to improve squad depth at Riccarton.
Speaking after the Aberdeen match, he said: "We are quite light squad-wise and today we have some of the young ones like Aidan Denholm and Connor Smith in with the first team who need to go out on loan to develop.
“The only options we had [on the bench] really were Jamie Walker, Aaron McEneff and Euan Henderson – who will go out on loan as well. We need more in there.”