The 24-year-old spent last season on loan at Hull and played a pivotal role in a successful season that saw them retain their Premier League status as well as finish runners-up in the FA Cup.
However the Tigers are now reluctant to meet Tottenham's valuation and will not want to pay more than £5 million.
Crystal Palace could now step in and sign Livermore, who has one England cap, to strengthen their midfield and his partnership with Mile Jedinak would certainly be effective.
Spurs have sent the midfielder on seven different loan spells over the past six seasons and his time with Hull during the last campaign was undoubtedly brought out the best in him.
Playing alongside Tom Huddlestone in the middle of the park, the 24-year-old was able to roam around the park and was given more of an attacking role as a result.
He benefitted from this and would operate in a similar role at Selhurst Park were he to make the move to the Eagles.
Jedinak would perform the defensive capabilities allowing Livermore to carry the ball forward and create goalscoring chances as he did under Steve Bruce.
The combination of Jedinak and Livermore in the heart of the Palace midfield would see two powerful players provide everything between them.
|Team||Pos||Apps||Goals||Goal Assist||Accurate Pass / apps||Duel Won / apps||Interception / apps||Mins|
|Mile Jedinak||Crystal Palace||MF||38||1||1||30.55||9.16||3.66||3,389|
The Australia captain may not have matched Livermore's offensive actions last season but his defensive capabilities and dominance in the midfield would provide Pulis with the perfect balance.
New Spurs boss Mauricio Pochettino might want to keep the English midfielder at White Hart Lane after such a successful loan spell, but with so many players in the same position it is more than likely that the club will cash in.