The Reds were very close to wrapping up things but failed to get the it over the line before time
Liverpool were set to sign 19-year-old Fabio Carvalho on Monday and loan him back to Fulham for the rest of the season, but the flexible young attacking player will now see out the remaining six months of his contract at the Craven Cottage.
A fee of £8million pounds had already been agreed for Carvalho but that agreement came late after Fulham failed to tender an initial £5million Liverpool offer.
In the end both parties couldn't finish the necessary paperwork needed for the terms agreed on the transfer on time.
Carvalho is now set to leave Fulham at the end of his contract in June and the Reds will henceforth be looking at securing a free transfer for the teenager , with a number of English and foreign clubs also in line for his signature.