Harvey Elliott will cost Liverpool an initial £1.5 million potentially rising to £4 million with add-ons, according to Sky Sports.
Fulham had been offered just £750,000 by Liverpool in the way of an out-of-court settlement but wanted £10 million.
That meant a tribunal was necessary and a compromise has been struck between the two clubs.
The deal means that Liverpool will pay the Cottagers a record compensation fee for a 16-year-old after he checked in during 2019.
Fulham are thought to be happy with the outcome and both clubs – and Elliott – can now move on.
The tricky winger has played nine games for the Premier League champions and is currently on loan at Blackburn Rovers.
He has scored four goals and registered nine assists during his time at Ewood Park and appears to be relishing regular action.
Elliott’s games for Liverpool have typically come in the cup competitions, although he has featured in two Premier League games.
Fulham will be satisfied that the settlement also includes a 20% sell-on clause of any future fee the Reds claim for Elliott.
TBR View: A good deal for all parties, now football can be the focus
This has rumbled on for too long and both clubs will be happy to park this and get on with current affairs.
Both clubs have come out of the tribunal pretty good. Liverpool don’t have to fork out £10 million, whilst Fulham receive considerably more for a player who they were only offered £750,000 for.
Elliott looks like a superb prospect and to be performing well in the Championship at 17 is no easy feat.
The challenge for him next season will be to head back to Liverpool and stake a proper claim for a place in Jurgen Klopp’s team.