The 24-year-old England international has been with the Blues since 2011 after coming through the youth system at Arsenal Ladies.
She has also spent time out on loan at Nottingham Forest and Los Angeles Strikers.
"This is a fantastic move for me and I am really looking forward to the start of the season," she said.
"I had a great year with Chelsea Ladies last season winning the double but this is a brilliant move for me and hopefully I can help Liverpool Ladies to improve on last season."
Her move to Liverpool was announced shortly after Chelsea completed the signing of England's Karen Carney from Birmingham City Ladies.
Liverpool Ladies have signed Chelsea Ladies midfielder Laura Coombs a season-long loan deal.