The 16-year-old striker impressed Anfield staff sufficiently enough to be rewarded with a move and could go on to net the Shrimpers a tidy sum.
"Michael has joined Liverpool. It's a good deal for the football club and a great opportunity for Michael to be at one of the biggest clubs in the world," youth coach Ricky Duncan told Southend's official website.
"The deal could be worth over a quarter of a million pounds if he goes on to realise his potential but the initial fee is a lot smaller than that.
"He leaves Southend with our best wishes and we're delighted he has managed to move on to a club of Liverpool's stature."