The 48-year-old Liverpool's new manager replaces Brendan Rodgers, who was sacked on Sunday after three and a half years in charge with the club 10th in the Premier League.
The German coach will earn £5m a year, rising to £7m with bonuses for a Premier League title or Champions League qualification.
Klopp is expected to bring Zeljko Buvac and Peter Krawietz - his former assistants at the Bundesliga club - to Anfield.
''Firstly, I would like to offer thanks to the ownership of Liverpool Football Club for showing faith in me and my staff and presenting us with this wonderful opportunity,'' Klopp said posted on Liverpool's website on Friday. ''They have presented to me a very clear vision and I share their ambitions and model of work.
''I am very excited by the challenge we face and eager to start the job and begin implementing our ideas and ways of working with this team. This is a talented group of players and there is still much to compete for this season.
''Winning is important but so is how you win and how you play the game. I believe in a playing philosophy that is very emotional, very fast and very strong. My teams must play at full throttle and take it to the limit every single game.
''It is important to have a playing philosophy that reflects your own mentality, reflects the club and gives you a clear direction to follow. Tactical of course, but tactical with a big heart.
''Liverpool has extraordinary supporters and Anfield is a world renowned home, with an incredible atmosphere. I want to build a great relationship with these supporters and give them memories to cherish. I hope we can feed off each other's energy and that we take this journey together.”
''When an opportunity presents itself to acquire one of the most sought-after leaders in the game, it is something you have to pursue decisively and we are delighted he has accepted our invitation.
''He possesses all the qualities we are looking for in a manager - he is a strong, inspirational leader, who has a clear philosophy of high energy, attacking football. Critically, he is also a winner and someone who can connect with and enthuse our supporters.
''It is our job now to support Jürgen every step of the way and help him achieve his full potential at this great football club.
''He is enthusiastic about the squad of players and wants the team to fight to achieve success this season and beyond. His attitude is infectious and we believe it will lift the entire club.''
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