No financial details of the deal were disclosed but Burnley said they had broken their previous transfer record for Belgian international midfielder Steven Defour, whom they signed earlier in the close season.
British media reported at the time that the club had paid 7.35 million pounds ($9.63 million) for Defour.
"The Premier League was a big draw for me and it's where I aspire to be after the summer I've had," Hendrick told the club's website (www.burnleyfootballclub.com).
"Burnley did so well last year, going unbeaten for five months, and how much they wanted me this summer was a real positive for me."
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Burnley, who lost 3-0 to Chelsea in the Premier League on Saturday, host Hull City on Sept. 10, after the international break.
(Reporting by Ian Rodricks in Bengaluru,; Editing by Neville Dalton)
