The 18-year-old will not re-sign with the Shrews and has been training with the Clarets for over a week.
The Shrews have been told he will not stay at the Sky Bet League One side but chief executive Matt Williams insisted they will not accept Burnley’s opening offer.
Town chief executive Matt Williams told the Shropshire Star: “Burnley made us an offer but we turned it down and told them what we felt we’d get at a tribunal.
“They have left their offer on the table and gone away to look at their next step. His agent told us he definitely won’t be signing for us.
“Burnley are doing what they think is right for their development group, but we’ve done some due diligence and research into similar cases that have gone to tribunal.
“We know where we should be and what we should be getting and we’ve told that to the agent and Burnley.
“We have no issue with Burnley – they’re a great club and I know their chief executive (David Baldwin) very well from his time at Bradford.”