The young Spaniard seemed a certainty for the Reds ahead of the World Cup, but despite being dropped from the national team squad by Vincent Del Bosque, enabling the chance to complete a deal this month, talks with the Anfield club seem to have stalled.
With 4 out of last season's top 7 all looking for left backs, the few that may be available are very much hot property, and it is believed that Tottenham may have the edge over other clubs as a result of their willingness to offer at least one of their international players in part exchange for the 21-year-old.
With a high transfer fee the possible reason for Liverpool failing to agree a deal with Europa League winners Seville, it seems that if Spurs do decide they want the player, they possess a deeper pool of valuable players to sweeten the deal for the La Liga club, and may therefore have a fairly significant advantage over Brendan Rodgers' side.
Missing out on their chief left back target would be a blow for the Reds, especially considering they were so impressive in securing Champions League qualification last season. However, the World Cup performances of Daley Blind and Ricardo Rodriguez have already reportedly caught their eye as alternatives to the Spaniard, and it may be a case that the Anfield club end up with just as talented a youngster for a fraction of the price.