Liverpool's transfer committee have had to throw their January transfer plans in the bin after Jurgen Klopp made it clear he did not want Barcelona right-back Martin Montoya in his squad, reports the Mirror.
The Anfield outfit have maintained a long-term interest in Montoya and have continued to track him during his current loan spell at Inter Milan.
Brendan Rodgers considered the Spaniard a top target in 2013, but Barcelona believed he would become a first-team star in the future and were unwilling to sell.
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However, the 24-year-old's career has curtailed since Rodgers first identified him as a potential signing and many Barcelona coaches are no longer of the opinion that he can cut it at the Nou Camp.
Similarly, Klopp isn't convinced he will add anything on Merseyside and has told his new club to dispose of two years worth of scouting reports and move on.
Decision and options
That leaves Barcelona with a big decision to make, as they were already considering whether or not to cancel Montoya's two-year loan deal at the San Siro as Roberto Mancini has not given him the game time they were hoping for.
Liverpool are already well stocked at right-back with Nathaniel Clyne arriving from Southampton in the summer transfer window and Jon Flanagan due to return from a lengthy lay-off in December.
One transfer deal is on
Klopp may not be a fan of Montoya, but reports earlier this week claimed the German had given his blessing for Liverpool to chase Porto's exciting youngster Ruben Neves.
The 18-year-old has attracted interest from Chelsea, Real Madrid and Barcelona, but Liverpool made an informal enquiry earlier this week and were encouraged by the midfielder's representatives.