Liverpool could pay up to £4.3million for Harvey Elliott after the fee for his transfer from Fulham was set by a tribunal.
The Reds were unable to agree a compensation amount with the Londoners when the then 16-year-old Elliott moved to Anfield in July 2019.
And the Professional Football Compensation Committee has determined Liverpool must pay an initial £1.2m along with £300,000 for Elliott, now 17, having signed his first professional contract last year, with another £200,000 due when he pens a second professional contract.
Further payments are based on cumulative first-team appearances and an appearance for the England senior side.
The maximum Liverpool would have to pay is £4.3m, which would be triggered by Elliott making 100 first-team appearances for the Reds while also earning an England cap.
Fulham will also receive 20% of the fee from any future sale of the teenager.
It is understood Liverpool regard the ruling as a fair outcome.
The Reds had initially offered £850,000 plus add-ons which was deemed 'insulting' by Fulham. The Londoners had wanted £10m for Elliott, with a further £10m in add-ons.
Elliott is currently on a season-long loan at Championship side Blackburn Rovers, where he has impressed in scoring four goals and providing nine assists in 24 appearances.
The 17-year-old made eight senior appearances for the Reds last term while becoming the youngest-ever player to start a competitive match for the club.
