Stoney, who has spent the last three seasons with Arsenal Ladies, joins Scott Rogers’ side after helping the Gunners to win the FA Women’s Cup in 2016.
Casey is a vastly experienced central defender who has also previously played for Charlton Athletic Ladies, Chelsea Ladies and Lincoln Ladies.
As well as captaining Team GB at the London Olympics and the Lionesses at Euro 2013, Casey has appeared for England in the last three FIFA Women’s World Cup, coming off the bench to help the Lionesses to beat Germany 1-0 to seal a bronze medal in 2016.
On joining the Reds, Stoney said: “This is a great move for me joining a fantastic Club and I am really excited for the new season.
“I was really impressed with Liverpool Ladies last season as they had a big turnover in players but still managed to have a good first season under Scott (Rogers).
Speaking on the signing of the England international, Reds boss Scott Rogers said: “This is an absolutely brilliant signing for the Club. Casey is an experienced international defender with over 120 caps for England which highlights what a crucial player she will be for us next season.
“Casey’s reading of the game and ability on the ball is fantastic so I have no doubt that she will prove to be a great signing for us.”