The Spaniard moved to AC Milan in 2015 and could be set for a big season in the doing campaign.
Suso - Picture Supplied by Action Images
Though he has struggled for football in Italy so far, the former Spain Under-21 man could be set for a breakthrough season after impressing in Serie A earlier this year, and he started in the recent friendly between the two sides.
The Echo, quoting Italian newspapers as a source, have said that Liverpool's contract offer to the player in the 2014-15 season was not good enough for him to agree to extend his stay at Anfield.
The attacking midfielder was subsequently sold to Milan in the winter transfer window that season, with only a few months remaining on his existing contract.
Suso in action for AC Milan
Still just 22-years-old, Suso had an impressive loan spell at Genoa in the second half of last season, scoring six goals in 19 matches. It sets him up to make a more concerted attempt at breaking into the Milan first team in the coming campaign, having found himself on the fringes since moving to the San Siro 18 months ago.
The youngster joined the Reds in 2010, and caught the eye as an exciting young player, making 21 appearances before heading out on loan to Almeria.
Of course, a player as young as Suso shouldn't be holding his club to ransom over a new contract, but if he was asking for a deal reflecting a certain position in the squad, and then-manager Brendan Rodgers didn't feel he fulfilled that role in his group of players, then it is easy to understand why there could be a breakdown in contract negotiations.
Suso after scoring for Liverpool - Picture Supplied by Action Images