The 19-year-old joined the Championship club on loan on Thursday and he will complete a permanent move to Huish Park when the transfer window reopens in January.
"Adam is a great prospect," Yeovil manager Gary Johnson told the club's official website. "I personally feel he is ready to play Championship football now.
"I remember Robbie Fowler saying that Adam is one of the best finishers he has seen in a long time. That is big praise."
Morgan made three first-team appearances for Liverpool, all of which came in the Europa League.