Despite his successful recovery from a knee injury that saw him miss 619 days of action, it was deemed that Flanagan would benefit from regular first-team football under Sean Dyche.
Jurgen Klopp is believed to have faith in Flanagan’s ability, however, with a long-term role still likely under the German on Merseyside.
Burnley currently have Ben Mee, Stephen Ward, Danny Lafferty, Matthew Lowton and Tendayi Darikwa as full-back options, but Flanagan should come in to play a key role.
This will likely see him regularly deployed at right-back, with Mee established as one of Dyche’s most important players.
It remains to be seen whether Klopp moves to sign cover for Flanagan for 2016/17, with Brad Smith also leaving Anfield this summer to join Bournemouth in a deal worth £6 million.
This leaves Klopp with Clyne, Moreno, Connor Randall, Andre Wisdom and Joe Gomez as senior full-back options.
Flanagan’s departure could prove positive for Trent Alexander-Arnold, however, with the youngster joining Klopp’s squad for Liverpool’s pre-season tour of the US.
Able to play both at right-back and in midfield, Alexander-Arnold may be earmarked for a role in the first team this season.