The imposing 6ft 3in defender has joined from League Two outfit Lincoln after completing a successful trial and work experience period during the past month.
Hobbs put pen to paper on a three-year deal at Anfield on Thursday morning accompanied by his parents, agent and Imps boss Keith Alexander.
The fledgling youngster, who played his first competitive game for the Reds during Tuesday night's 3-2 reserve defeat to Merseyside rivals Everton, said: "It's a big weight off my shoulders to have finally signed a contract and is brilliant to be able to say I'm now a Liverpool player.
"Three months ago I was watching Liverpool win the Champions League on television and now I've joined them. It's unbelievable and I'm still coming to terms with it, but it's the best birthday present I could have ever wished for."
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