Liverpool will pay Burnley £6.5million for forward Danny Ings, with a possible £1.5m in add-ons following a decision by the Professional Football Compensation Committee.
Ings moved to Anfield from Turf Moor when his contract expired at the end of last season, but Burnley were entitled to compensation as the England international is under 24.
The fee due from Liverpool is a record for one ordered by an English tribunal, surpassing the £3.5m plus a further £3m based on future appearances that Chelsea had to pay Manchester City for Daniel Sturridge in 2010.
Burnley will also benefit from a 20 per cent sell-on clause should Liverpool profit from any future move made by the player.
A statement from the Premier League club read: "Liverpool Football Club would like to thank the PFCC panel for their time and diligence in deciding this matter.
"We believe the process was conducted fairly and we respect the outcome.
"We are pleased for Danny Ings, in particular, that this chapter is now complete and he can look forward to a long and successful career at Liverpool."
Ings scored three goals in eight appearance for Liverpool this season and earned an England debut in October's Euro 2016 qualifier against Lithuania.
It proved to be his final senior appearance of the campaign after the 23-year-old suffered an anterior cruciate knee ligament injury in his first training session under Liverpool boss Jurgen Klopp.