BURNLEY will receive an initial £6.5million for striker Danny Ings with the total potentially rising to £8million, a tribunal has ruled.

The 23-year-old moved to Anfield when his Clarets contract expired last summer, but Burnley were due compensation as he was under the age of 24.

The two clubs failed to negotiate a fee between themselves which meant the issue went to tribunal in Manchester on Tuesday, with Burnley chief executive Dave Baldwin and boss Sean Dyche in attendance, as was Ings himself alongside Liverpool's head of legal Jonathan Bamber.

The initial £6.5million fee is a record guaranteed compensation fee, while the tribunal also ruled that the Reds must pay a further £1.5million based on appearances.

The Clarets will also receive 20 per cent of any future profit Liverpool make from the sale of the player.

The two clubs were informed of the decision by the Professional Football Compensation Committee (PFCC) yesterday.

Burnley feel the decision to award a record amount of compensation vindicates their decision to press ahead with a tribunal, after failing to agree a fee with Liverpool last summer, with the Reds reluctant to go beyond £6million and the Clarets holding out for around £10million.

"We acknowledge and accept the tribunal’s decision," said Baldwin.

"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."

The tribunal considered over 400 pages of evidence from Burnley detailing the role they played in Ings' development during his time at Turf Moor, as well as looking at witness statements and analytics.

The fee eclipses the £6.5million Chelsea were ordered to pay Manchester City for Daniel Sturridge in 2010.

The Londoners had to pay £3.5million up front with a further £3million in add-ons.

A spokesman for Liverpool said they respected the outcome and were pleased for Ings that the matter was now closed.

"Liverpool Football Club would like to thank the PFCC panel for their time and diligence in deciding this matter," a statement read.

"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."

Ings scored three goals in his first eight appearances for the Reds, but a cruciate knee ligament injury suffered in October has kept him out since then.

He also made his England debut since moving to Anfield.

He joined the Clarets from Bournemouth for £1million as a 19-year-old in 2011 and scored 43 goals in 130 games, including 21 in the Championship promotion campaign of 2013/14 and 11 in last year's Premier League season.