The Reds made an offer of £16 million for the defender but the Europa League winners wanted at least £20 million, a valuation Liverpool weren't prepared to meet.
Brendan Rodgers has seemingly wasted no time in trying to bring in an alternative and has had an £8 million bid for Swansea City's Ben Davies rejected according to several reports.
Tottenham are also interested in Davies but their interest appears to have ended because of Swansea chairman Huw Jenkins demanding around £12 million for the 21-year-old.
The Daily Telegraph has reported that negotiations to land Davies could be tricky as a result of Liverpool's apparent pursuit of striker Wilfried Bony, but Liverpool are prepared to return with another bid for the left-back.
The same report also comes up with something that was mentioned not so long ago by other sources, suggesting that Kolo Toure has the option to join Trabzonspor. The experienced Ivory Coast defender has just the one year left on his contract, with the report saying that Liverpool will consider offers, making a move to Turkey a possibility.
Several of the transfer reports this morning still mention Liverpool's interest in Lille striker Divock Origi - with the likelihood that the Belgian will stay at the French club on loan for a season as part of the deal.