Fulham will receive a record fee for a 16-year-old after a tribunal ruled that Liverpool must pay up to £4.3m for Harvey Elliott.

It is understood the Professional Football Compensation Committee ruled that the Premier League champions must pay a basic fee of £1.2m for Elliott, who made the move north to Anfield in July 2019.

A further £300,000 is due as a result of the now 17-year-old signing his first professional contract – something he did with the Reds last July – and another £200,000 will be owed when the England under-17 international pens a second deal, which he is expected to do when he turns 18 later this year. The fee could rise by another £2.6m subject to a number of other clauses being met, based on cumulative first-team appearances and international recognition.

It is understood that for the full £4.3m to be due, Elliott would need to play more than 100 games for Liverpool and earn a senior England call-up, while Fulham will have a 20% sell-on clause.

The ruling is well short of the £10m plus add ons that Fulham were understood to have hoped to receive. Elliott has scored four times on loan at Blackburn this season, but in a statement the Cottagers declared themselves happy with the outcome.

“After a full hearing, the PFCC has decided that Fulham should be entitled to substantial compensation,” the statement said. “The award (undisclosed) is a record amount for a 16-year-old player and, in the circumstances, Fulham is very pleased and thanks the PFCC for its careful consideration of the arguments we put forward.”