The club have accepted the punishment
Liverpool have been banned from signing players for their academy from other English clubs for two years after breaking Premier League rules, with the second year suspended for three years.
The club have also been fined £100,000 over an attempt to sign a youth player from Stoke City.
The Premier League says there is evidence Liverpool regularly communicated with the player's family to encourage a move, which is not allowed.
The club have accepted the punishment.
In a statement, the Premier League said: "The Academy player concerned was previously registered at Stoke City FC. An application by Liverpool in September 2016 to register him, following Liverpool and Stoke agreeing compensation, was rejected by the Premier League Board due to an offer to pay the player’s private school fees.*
"In an investigation following that rejection, the Premier League found evidence that Liverpool’s conduct prior to applying to register the player contravened League rules.
"The League found evidence demonstrating regular communications between representatives of the club and members of the player’s family. This included hosting them at Anfield for a match with expenses paid and other efforts to encourage the player, via his family, to sign for Liverpool. League rules strictly prohibit the offer of any inducements to encourage a move.
"Liverpool have cooperated with the Premier League’s inquiries in a timely and thorough manner and admitted the rule breaches asserted against them.
"The club will pay a fine of £100,000 and will be prohibited from registering any Academy players who have been registered with a Premier League or EFL club in the preceding 18 months.
"This ban will last for two years, with the second year suspended for a three-year period (to be activated in the event of any further similar breach by the club)."