Icelander Emilsson joins Liverpool
Club chairman Jon Halldorson confirmed the move to Reuters but no details of the deal were disclosed.
"Liverpool made me an offer that I couldn't refuse. It's just like a dream come true," Emilsson told Icelandic news website www.mbl.is.
Emilsson trained with Liverpool last month and was offered a contract. He had been watched by other clubs, including Manchester United, Glasgow Rangers and IFK Gothenburg.
Emilsson has not played for Iceland's first team but has represented the national under-17, under-18 and under-19 sides.
He will be the third Icelander to play for Liverpool. Haukur Ingi Gudnason joined the Premier League club in 1997 and Gudlaugur Victor Palsson has played for the youth and reserve teams recently.