After losing out on Muhammed Salah to Chelsea earlier in the week the Reds set their sights on Dnipro winger Yevhen Konoplyanka.
The Ukrainian is believed to have taken a medical and agreed terms on a four-and-a-half year deal.
But despite Liverpool triggering the player's £15m release clause it is believed that the Dnipro president refused to sign the necessary paperwork for the deal to go through.
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