Liverpool could lose out on signing Real Madrid playmaker Esteban Granero, according to Talksport.
Spanish new money side Malaga are reportedly set to gazump the Anfield club in the bidding for the 24-year-old.
Kenny Dalglish was thought to be keen on Granero to add some creativity to his midfield.
Liverpool have been struggling to score goals in recent months and the Scot is searching for solutions for this problem.
The Spanish Under-21 international has fallen out of favour at the Santiago Bernabeu under Jose Mourinho – playing just 11 minutes in La Liga this season.
He is keen for a move to secure first team football and it was thought Liverpool were set to crush Blackburn Robers vain hopes of taking him on loan.
Real would prefer a permanent transfer and fellow La Liga side Malaga have come out as rivals to Kenny Dalglish’s side for Granero’s signature.
Former Madrid boss Manuel Pellegrini is the boss at newly wealthy Malaga and it was under the Argentine Granero had his most successful spell with Los Merengues.
Pellgrini is thought to be keen on bringing the former Getafe midfielder to join his Malaga revolution and their link may have put paid to Liverpool’s hopes.