The former Rangers centre-back could make his Clydesdale Bank Premier League debut at Celtic Park today.
The 21-year-old Wilson has struggled to win a first-team place at Anfield and has spent time on loan at Blackpool and Bristol City since leaving Ibrox in July 2010. He made nine first-team appearances for Liverpool and played just once for Bristol City, as an 89th-minute substitute against Middlesbrough in November. The Hearts manager, John McGlynn, said: "Danny is a quality player and someone we know a lot about. Even at such a young age, he brings a lot of experience and not only will he be a very good addition to our squad, he will be a good influence on the young players.
The centre-back's arrival comes as Marius Zaliukas prepares to serve a suspension at Celtic Park.
The Scottish Premier League lifted the transfer ban after players were paid on time in January following recent delays. McGlynn is still restricted to signing players who are under 21 on a one-in, one-out basis and who are on lower wages than those leaving. Wilson, capped five times for Scotland, falls into that category, and McGlynn acted after selling Ryan McGowan to a Chinese club.
Wilson he feels ready to play at Celtic Park. "I played in an under-21 game on Monday so I'm as fit as I can be and I'm ready to go," he told Hearts TV. "I'm ready to play and whenever that is I'll be ready for it. I just got the call this morning and I can't wait to get started.I need to play football and I've been told I'll get the opportunity to come here and play. That's the most important thing. I always keep in touch with the SPL and once I knew Hearts were interested I was delighted to come up."