Watford have confirmed the signing of Jerome Sinclair from Liverpool on a five-year deal.
The 19-year-old signed a deal with the Hornets last month but only now has a compensation fee been agreed, after what Liverpool termed "amicable and professional discussions" between the two clubs.
It had been reported the agreed fee was around £4million, but the Watford Observer understands the figure to be around half this amount, with £1million payable up-front and another in a year's time.
Sinclair, a talented forward who is the youngest player to ever play for the Reds, was out of contract at Anfield but had been offered new terms by Jurgen Klopp.
For me it's an exciting new chapter and I can't wait to get started with @WatfordFC 🙏⚽️
— Jerome Sinclair (@JSinclair_48) June 30, 2016
That meant Liverpool were due compensation for any transfer, and had the two clubs not agreed a price it would have been set by independent tribunal.
Sinclair made five appearances in a red shirt, the first in a League Cup tie at West Brom in 2012, when he came off the bench at the age of just 16 years and six days.
He made his sole start for the club in their 2-2 draw at Exeter City in the FA Cup third round in January.
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