Rumours were circulating on Wednesday evening suggesting the Reds may be in a position to land the talented Colombian striker but it appears he is destined for Real Madrid.
There has been some concern during the summer about Liverpool's lack of striking options, and lack of ambition, but the move for Falcao should ease those fears a little, even if the move didn't materialise.
Liverpool fans are naturally a bit concerned about their striking options. Who wouldn't be after a talismanic figure in Luis Suarez, a man who scored 31 Premier League goals last season, has departed the club?
Some have suggested that Liverpool need a marquee signing to replace Suarez. But at least enquiring for a striker of Falcao's calibre is showing some intent from the Reds. They want to bring in quality players that are capable of firing sides towards titles and the latter stages of the Champions League.
So far the signings have been from clubs lower down in the Premier League, or relative unknowns - who are perhaps unknown because of their young age combined with the fact they've come from the European leagues.
They know they've got a big void to fill and want someone who has an aura about them and enough quality.
There has been plenty of fretting about Liverpool's transfer targets from some sections. They need a striker, of course they do. The safe option in Loic Remy fell through, and one audacious option has failed. But it shows the club are trying to address one issue ahead of the season.
Clearly a striker is high on the list, and they're now looking at other options. It's hard to question the club's ambition when they're going after players with terrific goalscoring records who are catching the eye of Real Madrid. But securing those targets is another matter entirely.
It's a big difference from last summer, when the club was targeting Iago Aspas. It shows how far the club has come in such a short space of time.