Liverpool have been told to pay Burnley £6.5 million plus another £1.5m linked to performance for striker Danny Ings, the Professional Football Compensation Committee (PFCC) has ruled.
The decision -- a new record for a fee ordered by a tribunal -- means Burnley will also receive 20 percent of the money from any future sale of Ings.
It settles a dispute between the two clubs over the player, who moved to Anfield last summer when his contract with Burnley -- for whom he scored 11 Premier League goals in the 2014-15 season -- expired.
The 23-year-old England international joined under the Bosman ruling, but his age and the fact that he had been developed by Burnley meant they were entitled to a compensation payment.
After talks between officials from the two clubs failed to reach an agreement on the amount -- with some reports suggesting Liverpool had offered around £4 million -- an independent board met the clubs' chief executives earlier this week to settle the matter.
A Liverpool statement said: "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 chief executive David Baldwin said in a statement: "We acknowledge and accept the tribunal's decision.
"We feel we must reiterate this is an unprecedented record payment for training compensation and not a transfer fee.
"As the initial fee decided by the committee represents almost double the previous record for a tribunal, this fully justifies our decision to press ahead with what we felt was a fair reflection of the part Burnley Football Club played in Danny's development."
Ings, brought to Anfield by former Liverpool boss Brendan Rodgers, has not played since suffering a knee injury in October.
The figure the club must pay for him beats the £3.5m Chelsea had to pay Manchester City in 2009 for Daniel Sturridge, also now at Liverpool, although add-on clauses took his eventual cost to £8.3m.