The 20-year-old could make his Cottagers debut in their Championship clash against Sheffield Wednesday on Saturday.
Fulham chairman Tony Khan told the club's official website: "I'm delighted to welcome Sheyi Ojo to the Fulham Football Club.
“I’ve seen first hand what a tremendous work ethic Sheyi has both on and off the pitch.
“He possesses fantastic physical talents and also carries himself with poise and class, and I know that he's going to be a great addition to our squad”.
Ojo, who has previously spent time on loan with Wigan and Wolves, has made 13 appearances for Liverpool since his debut in an FA Cup draw at Exeter in January 2016.
He has represented his country at every age group from Under-16s to Under-20s, and was a part of history this summer as England won the U20 World Cup.
His fitness and consistency has previously been questioned before by Liverpool manager Jurgen Klopp.
In March he said: “Technical-wise he’s so good that he doesn’t use it, but that makes no sense because at the highest level you need this speed.
“Even in not-perfect games you can see he’s involved in other parts.
“So, it’s a very important moment for him and if he keeps this attitude then everything will be good in the end, 100 percent.”
Fulham are hoping that he has improved since Klopp made these comments and that he will have a successful 2017-18 campaign on loan at Craven Cottage.
Also, with the arrival of Ojo, Fulham will be hoping that they can kick on after drawing their first three games this season with a win against Sheffield Wednesday on Saturday.
Source: Daily Express