Barcelona pushed ahead to sign the 27-year-old goalscorer reportedly on condition he apologise for biting Italian defender Giorgio Chiellini.
The Spanish club said in a statement on Friday they and Liverpool "have reached an agreement for the transfer of Luis Suarez", but declined to say how much they paid.
Spanish newspapers reported the amount at 81 million euros ($A121 million) while British media put the sum at E75 million ($A112 million). The reported fees would make Suarez one of the most expensive players ever.
The player said a sad farewell to fans of the English club, whom he helped fire to second place in the Premier League last season, sending them into the Champions League.
"It is with a heavy heart that I leave Liverpool for a new life and new challenges in Spain," he said in a statement published by Liverpool.
"This club did all they could to get me to stay, but playing and living in Spain, where my wife's family live, is a lifelong dream and ambition. I believe now the timing is right."
The Spanish side said Suarez "will be travelling to Barcelona next week for a medical, to sign his five-year contract and to be officially presented to the media and fans as an FC Barcelona player."
Barcelona FC strikers Messi and Neymar.
Most formidable strike force in the world
Suarez's signing furnishes the Catalan club with one of the most formidable strike forces in the world as he joins two other superstar forwards - Argentina's Lionel Messi and Brazil's Neymar.
Barca's new coach Luis Enrique is overhauling the squad after a disappointing season in which they narrowly failed to defend their Spanish league title.
Barcelona were seduced by the goalscoring record of Suarez, who was the top scorer in England's Premier League last season with 31 goals.
"Luis Suarez is one of the most productive strikers in European football," the club said.
"He also has a strong competitive spirit and a powerful figure, and he's coming to Barca in search of even more."
FIFA rejects Suarez appeal over bite ban
The announcement comes as FIFA has dismissed appeals by Uruguay and Luis Suarez over the striker's four-month global ban for biting a World Cup opponent.
However amid doubts about the scope of the restrictions on the star goalscorer's activities, Suarez could still take a case to the Court of Arbitration for Sport (CAS).
"The FIFA Appeal Committee has decided to reject appeals lodged by both the Uruguayan player Luis Suarez and the Uruguayan FA," a statement said.
"The terms of the decision taken by the FIFA Appeal Committee were communicated to the player and the Uruguayan FA today."
The FIFA statement said the decision was not binding, meaning Suarez could appeal to CAS.
Suarez and the Uruguayan Football Association have 10 days to request the full written reasons for the appeal being rejected by FIFA. They can then lodge an appeal with CAS.
FIFA spokeswoman Delia Fischer said that only the arbitration court could decide if the sanctions should be lifted while the appeal is decided.
If the CAS suspends the sanctions, Suarez - who bit Italian defender Giorgio Chiellini in a game on June 24 - could play at the start of the season.
If FIFA's ban is upheld, Suarez will not play football again until late October, well after the Spanish league restarts.
But if FIFA's ban is upheld, Suarez will not play football again until late October, well after the Spanish league restarts.
The ban precludes Suarez from entering any stadium and training with his club for the four month ban. But FIFpro, the World Players Union, says the sanctions are not clear enough.
with AAP, AFP
