Long-term Liverpool target Jose Enrique is set to snub a summer move to Anfield in favour of signing a new contract at Newcastle United according to BBC sport.
The 25-year-old Spanish defender has 15 months to run on his existing Magpies deal, but Newcastle United manager Alan Pardew is keen to keep the former Villarreal star at St James' Park.
Reds boss Kenny Dalglish has been linked with a whole host of left-sided full backs after deeming Paul Konchesky surplus to requirements at Anfield.
Konchesky has been loaned to Championship outfit Nottingham Forest with Dalglish instead opting to deploy an out of position Glen Johnson in the problem position for much of the season.
But a defensive addition remains a priority signing when the transfer window reopens in June.
Liverpool owners Fenway Sports Group have shown they are prepared to back King Kenny's Reds revolution with considerable financial investment – highlighted by the January signings of Luis Suarez and record-breaking £35million striker Andy Carroll.
Enrique is thought to have been Liverpool's first choice left back acquisition, but news that he is now set to commit his future to Newcastle will be a major blow for the Anfield club.
Having signed for the Magpies in August 2007 for a fee of £6.3million, Enrique made a slow start to his Newcastle career but has transformed into a key figure in the first-team and is now regarded as a firm favourite amongst the Geordie faithful.
Liverpool may now have to turn their attention to alternative targets as their pursuit of the highly rated Enrique looks to have come to an abrupt ending.