The Robins chairman, Steve Lansdown, told his club's official website: "This is not a satisfactory outcome.
"But it is a commercial decision bearing in mind the recent decision by a Football League tribunal that we were not entitled to any compensation.
"We are pleased that it has been recognised that Bristol City should be recompensed for our investment in Liam, and have got something out of the deal.
"It also shows that we were justified in standing our ground over the League's decision."