Ocean Outdoor is working with Land Securities, owner of the city's St John's and Clayton Square shopping centres, to place the site in a 90-metre-long media wall.
The screen, measuring 31 metres by 7 metres, will be positioned in front of St John's and will be flanked on either side by still images, which the city council will use to show a welcome message to visitors.
The semi-permanent structure should be up and running in time for the beginning of Liverpool's term as the Capital of Culture next year.
Land Securities claims the screen is the largest commercially available digital screen in Europe and has handed its launch and management to Ocean Outdoor.
Ocean, which is run by founder Damian Cox, specialises in large format sites and manages a series of high-profile locations including the BFI Imax in Waterloo, Centre Point and Trafalgar Square.
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