"Lille, Liverpool and Joe Cole have reached an agreement over the loan of the England forward for one season," Lille said on their website.
Cole, 29, failed to make an impact at Liverpool last season after joining the Merseyside club from Chelsea.
Cole, who has 56 caps, has not played for England since last year's World Cup.
"Of course I'd like to be back with England. It is one of my goals," Cole was quoted as saying on the club's website.
"The most important thing is to have the possibility to play in the Champions League."
Liverpool failed to qualify for this season's Champions League while Lille were drawn with Trabzonspor, CSKA Moscow and Inter Milan in Group B.
Get the best features, fun and footballing frolics straight to your inbox every week.
Thank you for signing up to Four Four Two. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.