Club do not want to pay for a player who will be available for nothing six months later
Liverpool have decided against making a January move for Marc Guehi and will instead wait to sign the England international on a free transfer when his Crystal Palace contract runs out next summer.
The 25-year-old centre-back came close to joining the Premier League champions in the final hours of the summer window, only for Palace to pull out of an agreed £35m deal.
Chairman Steve Parish is understood to have pulled the plug on the deal after manager Oliver Glasner stressed they had not kept their end of a bargain not to sell Guehi without a suitable replacement in place.
Guehi has made it clear to Palace for a long time that he will not be extending his contract, even though Palace were hoping that could happen in order to get a good fee for him.
The England defender was said to be deeply frustrated at the collapse of his summer move, having already started a medical with Liverpool before the transfer fell through. He now looks set to run down his contract and leave Selhurst Park as a free agent next summer.
Liverpool have identified Guehi as a long-term defensive option but also opted against any negotiations in January. They do not want to pay for a player who will be available for nothing six months later, according to sources close to the club.
The Premier League champions did strengthen their defensive ranks before the window closed, signing 18-year-old Giovanni Leoni from Parma for a fee in excess of £26m.