Long-term Liverpool target Ola Toivonen has penned a two-year contract extension at PSV Eindhoven, keeping him in Holland until 2014 reports skysports.com.
The 25-year-old Swedish international moved to Holland from Malmo in his homeland in 2009, and quickly established himself as a first-team regular in the Eredivisie.
With six goals to his name already this campaign, Toivonen has continued to attract attention from a host of clubs across Europe.
The Liverpool link stems from former Reds boss Roy Hodgson, who expressed an interest in bringing the PSV captain to Anfield, and was hoping to use his Scandinavian ties to engineer a deal.
However, it is rumoured that Kenny Dalglish is also weighing up a move for Toivonen in a bid to further strengthen his attacking options on Merseyside.
Dalglish spent big on his appointment as Liverpool manager, bringing Luis Suarez and Andy Carroll to the club, but a lack of strength-in-depth in the position means Toivonen remains a realistic option for the Reds.
However the extension of Toivonen's deal, that was set to expire at the end of the season will be a blow to the Barclays Premier League outfit, who will either have to pay big to sign the player, or turn their attention to alternative options.