Sunderland had been hoping to sign Ben Woodburn on loan for the season, but Liverpool have rejected the approach and will keep him at Anfield.
Woodburn burst onto the scene last term, scoring in the League Cup against Leeds and playing nine times for the senior team overall.
But this year has been more about developing in training and with the U-23s, with Woodburn seeing first-team action just once.
It has led to a surge in interest in the 18-year-old with Championship sides hoping to snare his services for the second half of 2017/18.
Sunderland were the front-runners, with Chris Coleman—previously Woodburn’s boss with the Wales national team—having taken over as manager at the Stadium of Light.
But Sky Sports now report the deal is off, with Woodburn set to stay at Anfield.
Further reports suggested Jurgen Klopp put a stop to the potential move, with the Reds boss concerned at a potential lack of cover for his senior side after the sale of Philippe Coutinho.
With the likes of Danny Ings and Daniel Sturridge still featuring in the gossip columns, and Marko Grujic having gone out on loan, Woodburn could yet prove a valuable resource for the Reds.
He can feature as a second forward, a wide option or even as a No. 8 creative midfielder—all roles Coutinho took up this term prior to his departure to La Liga.
Despite just 45 minutes of senior action to his name this term, Woodburn was on the bench at Burnley recently and could also feature in the FA Cup against West Brom.
He has also captained the Reds in the UEFA Youth League, where they won five of the six group games.