Chelsea have been ordered by a tribunal to pay Manchester City an initial fee of £3.5million for Daniel Sturridge and the striker's transfer could eventually cost the Londoners around £7 million.

The Professional Football Compensation Committee hearing ruled a compensation payment of £3.5million was due, with additional payments of £500,000 due after each of 10, 20, 30 and 40 first-team competitive appearances in all competitions.

A further payment of £1 million will be due if Sturridge makes a full international appearance, while City will be due a 15% sell-on fee if the 19-year-old leaves Stamford Bridge.

Sturridge joined Chelsea in July on a four-year deal after his contract expired a City.

The two clubs could not agree a fee and, because of his age, City were entitled to some recompense, which was determined by the tribunal.

Sturridge, nephew of former Derby forward Dean, made a total of 30 appearances for City, scoring six times.

Since joining Chelsea, the England Under-20 international has made eight appearances, finding the net for the first time with two goals in the Blues' 5-0 FA Cup third-round defeat of Watford earlier this month.