The 18-year-old has penned a deal running until the end of the current season, with a further year’s option in the Club’s favour.
Joining Liverpool’s Academy aged seven, Wigan-born Berry spent nine years on the Reds’ books before moving to his hometown club as an apprentice in December 2016.
The forward will link up with the Tigers’ Under-23s as he continues his development under the tutelage of Academy Manager Jon Beale.
“James is a very attack-minded player,” Beale commented. “He brings pace through the middle as a nine, but can also play a bit deeper as a 10.
“He’s got lots of pace and likes to get in behind people. He’s direct and has an eye for goal. We are pleased to have him in the building and we believe he can add something to the group.
“I’m excited about the prospect of working with him and furthering his development. We feel there is progress to be made and we are the right club for him to do that.”