The 20-year-old has been weighing up his options after receiving offers from a number of clubs, including the likes of Middlesbrough, Derby and Aston Villa but Press Association Sport understands the winger has opted to move to Craven Cottage.
Liverpool's fellow Premier League side Newcastle United had allegedly been interested in landing Ojo - either on loan or permanently - earlier in the off season but the Reds declined to let the Magpies steal him away.
A back injury saw Ojo's chances limited in the first-team last season, as he was reduced to playing just two times, which both came against Plymouth in the FA Cup third round ties which had to go to a replay.
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The England Under-20 worldwide, who joined the Reds from MK Dons in 2011 for £2m, has had previous loan spells at Wigan Athletic and Wolverhampton Wanderers.
Ojo has bags of potential but there's no way that he will be able to achieve what he can by sitting in the Liverpool development squad for another season. It's all well and good getting senior experience under your belt, but getting a taste of success every week is something that can see the England youth worldwide go to the next level.
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