The Reds had been linked with a move for the Hoffenheim player.
The Reds were linked with the 23-year-old by Bild earlier this week, amid reports he had a £14.1 million release clause in Hoffenheim contract.
However, they will now be forced to consider alternative targets - if, of course, they were interested in the first place.
Having began his career as a teenager at 1860 Munich, Volland moved to Hoffenheim in 2012, where he became a teammate of Reds forward Roberto Firmino and has since established himself as one of the Bundesliga's top performers.
Though recognised as an attacker, the six-cap Germany international has impressed with his all-round adding more assists (11) than he did goals (8) in 2015-16.
Liverpool boss Jurgen Klopp has been tipped to raid his homeland for talent this summer, but Bundesliga clubs have wasted little time cracking on with their own business.
Last week Bayern Munich announced deals for Portugal prospect Renato Sanches and Germany defender Mats Hummels, while Bayer have already acquired midfielder Julian Baumgartlinger from Mainz.