The 23-year-old midfielder made 25 appearances for the Reds last season but was facing stiff competition for a place in Brendan Rodgers’ first-team from new-boys Joe Allen and Nuri Sahin.
Coyle is confident Spearing’s passing ability and work-rate can help improve the Trotters as they look to make an immediate return to the English top flight.
“We have been in the market for a player of this kind for a long time, and Jay is someone that we have always had an eye on,” Coyle told the club’s website.
“He was previously never available and, indeed, played the majority of games in Liverpool’s first team last season in the Premier League.
“We did everything we can to bring Jay to the football club and so we are thrilled to bring in a player of his calibre.
“He is a young player that is driven, who is a terrific passer of the ball. He has a real desire to do well and has all the attributes that we crave at Bolton Wanderers.”
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