Although both types of writing involve examining sources, a literature review attempts to correlate the information and draw connections between the sources.
Literature Review - from The Writing Center at UNC Chapel Hill
A literature review discusses published information in a particular subject area, and sometimes information in a particular subject area within a certain time period. It usually has an organizational pattern and combines both summary and synthesis. A summary is a recap of the important information of the source, but a synthesis is a re-organization, or a reshuffling, of that information. It might give a new interpretation of old material or combine new with old interpretations. Or it might trace the intellectual progression of the field, including major debates.
There is not one "standard" for literature reviews but they should include the following:
Organizing your literature review:
Be Selective
Summarize and Synthesize
Keep Your Own Voice
Use Caution When Paraphrasing
Revise, Revise, Revise
Source: Literature Reviews - The Writing Center at UNC Chapel Hill
Items to clarify if not in assignment: