The 25-year-old has also been linked with Sunderland this summer, but the once-capped French international has chosen Anfield as his destination.
However, the Reds are yet to work out a deal with the Spanish outfit, who recruited Cissokho from Lyon last summer.
"Liverpool came to me and it's true that I have agreed to join them," he told Le10Sport.
"Now it's down to the clubs to decide a transfer deal. Liverpool want a loan, while Valencia prefer a permanent transfer."
Cissokho made his only appearance for Les Bleus against Norway in August 2010.