Former Scotland international, Hughes, will leave his role as Bournemouth’s technical director to move to Anfield at the end of the season.
Hughes joined Bournemouth’s recruitment team under Eddie Howe after retiring from the game and was promoted as technical director during the club’s stay in the Premier League.
The Cherries announced his departure at the end of the season on March 5.
He’ll be tasked with helping develop the Reds squad without legendary manager Jurgen Klopp, who will leave the club at the end of the season.
Hughes will be helped out by former sporting director Michael Edwards, who will return to the club having been named as CEO of football at Anfield.