The move was the Spanish club's last piece of business before a controversial transfer window closed, with the 23-year-old set to make his debut against Barcelona having already been entrusted with Valencia's number 10 shirt despite his limited time in Spain.
Elliott's arrival follows a largely unsuccessful loan spell at Aston Villa last season, where he made only nine appearances after Unai Emery's side chose not to trigger an obligation to sign him permanently for £35m.
Elliott first burst onto the scene as a 16-year-old, making his senior debut for Fulham in 2019 at 16 years and 30 days old, a mark that briefly stood as the youngest debut in Premier League history.
That breakthrough attracted interest from clubs across Europe, including reported attention from Real Madrid and Barcelona, but the England international opted to join Liverpool, a club he has since described as the one he supported as a boy.
In his time at Anfield, Elliott made almost 150 appearances and won two Premier League titles, in 2019-20 and 2024-25, along with the UEFA Super Cup, the FIFA Club World Cup, the League Cup and the FA Cup.
He also starred as England won last year's Under-21 European Championship, a second continental youth title for the midfielder, but found himself squeezed out of Andoni Iraola's plans following his return from Villa Park this summer, making the move to Valencia a chance to reset his career at 23.
The loan does not include an option to buy, meaning Elliott will return to Liverpool at the end of the season regardless of how his spell at Mestalla unfolds. He has already spoken of his desire to make an impact in Spain, telling reporters he was determined to "create his own story" and revealing an ambition to reach between 10 and 20 goals and assists in the campaign, though he stressed he was happy to play wherever Valencia's coaching staff asked of him.
The move reunites Elliott with a Valencia squad already featuring Mali international Aliou Dieng, and comes shortly after fellow Liverpool academy product Stefan Bajcetic completed a permanent move to Celta Vigo, continuing a busy period of departures from Anfield as Iraola reshapes his squad following his arrival from Bournemouth over the summer.