Liverpool will pay Burnley up to £8million for striker Danny Ings.
The Reds have been ordered to cough up a record £6.5m compensation fee plus £1.5m in add-ons to the Clarets after signing the 23-year-old last summer.
The ruling was made after the Premier League and Championship clubs lodged submissions to a Professional Football Compensation Committee panel earlier this week.
On the decision, Liverpool stated: "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."
Burnley are due a compensation fee for Ings, who left Turf Moor as a free agent, because he was developed over a number of years by the Lancashire club before the age of 24.