A joint statement from the club and the Premier League confirmed a deal had been reached with the 13-year-old involved to continue his current school and join another academy.
"The Premier League and Liverpool FC have reached a constructive agreement regarding the future education of a young player who was unable to register with the club," the statement said.
"Under the terms of the agreement, the player will be able to continue his education at his current school.
"He will also be free to join another club in the academy system without that club being required to pay compensation, which has been settled with his former club, Stoke City FC."
A league investigation found Liverpool guilty of offering prohibited inducements in an attempt to recruit a schoolboy from Stoke City.
(Reporting by Hardik Vyas in Bengaluru; editing by Sudipto Ganguly)
