Manchester City have raked in £1.7 million from Liverpool's signing of Chelsea striker Danny Sturridge.

The Daily Mail says City have pocketed £1.7million from Daniel Sturridge's move from Chelsea to Liverpool.

The former Blues trainee left Manchester to move to Stamford Bridge in 2009. And although he was out of contract, because he was under 24, City were entitled to some compensation for the work they had done on his development.

The tribunal ruled Chelsea had to pay City £3.5m, rising to a possible £6.5m depending on appearances and international caps.

The Blues were also entitled to 15 per cent of any sell-on fee, which will be activated now 23-year-old Sturridge has moved to Liverpool for £12m.