Kent has been with Liverpool since the age of seven but has spent the vast majority of his time out on loan since graduating from the academy in 2015.
The 21-year-old enjoyed temporary spells at Coventry City and Barnsley before spending time at Freiburg and Bristol City last season.
Kent will now spend the 2018-19 campaign in the Scottish Premiership with Rangers, where he will be managed by Liverpool legend and former youth team coach Steven Gerrard.
"When the opportunity came around to join a club of this magnitude it was a bit of a no-brainer," Kent told the club's official website.
"They've got a person in charge in Steven Gerrard who has played at the highest level and achieved great things, so to learn from him is great. I already know certain players here and I think it is a really exciting move for him and I'm looking forward to the opportunity."
Kent has made just one competitive appearance for the Liverpool first team, against Exeter City in the FA Cup third round in January 2016.