Liverpool appear set to miss out on African midfield target Mahamadou Diarra.
The Real Madrid midfielder appears set for a stay in the Spanish capital, despite reports last month that Liverpool boss Roy Hodgson was chasing the player's signature.
The 29-year-old moved to the Santiago Bernabeu for €26 million back in 2006, with Manchester United and Chelsea also chasing the Diarra's signature at the time.
His days in La Liga appeared to be numbered as Los Blancos looked to sell a number of players in an effort to balance the books, and Liverpool were alongside Aston Villa and Everton in the running to sign the defensive midfielder.
The Malian international fell down the pecking order at his current club following the arrival of Lassana Diarra, but agent Frederic Guerra has denied speculation of an exit this month.
"The situation is very simple. Mahamadou will be staying at Madrid.”
Liverpool boss Hodgson is thought to be keen on a big name signing as he fights for his position at Anfield, and Diarra could possibly have been that player.
NESV have reportedly offered the manager a transfer war chest in the region of £35 million, and a discount deal for the player would have been financially viable for Liverpool.
The Reds will now have to turn their attentions elsewhere, and a number of other midfielders have also been linked with a move to Merseyside.
Nuri Sahin, Mahamadou Sakho and Yann M’Vila are just three players thought to be on the Liverpool radar, and Hodgson could look to move quickly now the New Year is upon us.