As part of the deal, Liverpool will pay an initial £5m fee with add-ons expected to reach £2.7m, with the Merseyside outfit also agreeing to a 20 per cent sell-on percentage. There are not currently any plans for Carvalho to be loaned back to Fulham next season.
The pending transfer will now benefit Balham FC, the club where Carvalho first played after moving to London from Lisbon with his family in 2013.
Balham took a leading role in handling Carvalho's future and the Liverpool transfer is expected to see them land a small percentage of the deal. There was a chance Balham could have missed out on a windfall altogether as Carvalho's contract was due to expire at the end of this season. Had he chosen to join a club abroad the compensation fee to Fulham would have been much smaller.
Balham, whose men's first team play in the Combined Counties Football League Premier South Division, has over 20 age-group squads from under-sevens up to under-18s.