The England U21 international has passed a medical at The Hawthorns and will fly out and join his new team-mates at their pre-season training camp in Sacramento, California.
Liverpool manager Brendan Rodgers confirmed after Saturday's victory over Preston that the 21-year-old would join Alan Irvine’s side.
“He had a very successful period at Derby last year, doing very well under Steve McClaren,” he said.
"He now has the opportunity to go to another very good coach in Alan Irvine, who I know from my youth days. He is an excellent coach and West Brom are an excellent club.
“That will be another step for him in his development, playing regularly in the Premier League."
Wisdom gained his first international honours in the England U16 side that won the 2008 Victory Shield, before triumphing a year later at the Euro U17 Championships in Liechtenstein, scoring the opening goal in the 2-1 final victory over Spain.
He went on to captain England U19s before being handed his U21s debut against Israel in September 2011.
The Leeds-born right-back, who can also operate in central defence, scored on his Liverpool debut in a 5-3 Europa League victory at Swiss side Young Boys in September 2012.
Six days later he made his first domestic start in a 2-1 Capital One Cup win over Albion at The Hawthorns. Wisdom made 19 appearances for Liverpool during the 2012-13 campaign.
Wisdom spent last season on loan at Derby, making 34 appearances as McClaren’s side fell to defeat in the play-off final.
Albion head coach Irvine said: “I’m delighted to welcome Andre to the club. I've spoken to Brendan, who I've known for a very long time and who I trust implicitly. He said Andre would do a good job for us. That was reassuring.
“You want to find out about the person. You can see the player but you want to find out what they are like as a person. Brendan spoke very, very highly about him.
“He's a versatile lad. He's played as a right-back for Liverpool in the Premier League last season, he also played as a full-back for Derby.
“He grew up as a centre-back and played on the left side of central defence for Liverpool against Preston on Saturday.”