Liverpool have suffered a set-back in their pursuit of Leon Goretzka, according to reports.
The Germany international has been a long-term target of the free-spending Reds, who recently splashed out £75million to land Virgil van Dijk from Southamtpon.
And the Reds were confident they were leading the race to sign the Schalke midfielder, amid interested from a number of elite clubs including Manchester United, Juventus and Barcelona.
But Marca reports Schalke have offered Goretzka a lucrative contract totalling €12million-a-year to stay put, which could prove to be a stumbling block for Jurgen Klopp's side.
Jurgen Klopp reveals the real reason Philippe Coutinho was Liverpool captain for Swansea clash
Jurgen Klopp has explained his decision to hand Philippe Coutinho the Liverpool captaincy.
With Jordan Henderson and James Milner sidelined, the Brazilian wore the armband for the Boxing Day victory over Swansea.
It led to some sceptics suggesting it was a deliberate ploy from Klopp to keep Coutinho at Liverpool, amid speculation over Barcelona's interest in the player.
But the Reds boss insists the reasons behind his decision were far more innocent.
"I don't want to make it any less romantic but when Hendo and Milly aren't playing, Philippe Coutinho is our next longest-serving," he said.
"That was why he was captain. Maybe I could be smarter and think 'If I give him the armband, he will never leave'. But that is not how it works.
"Obviously he dealt with it really well because it can mean different things.
"You can feel the lift or the pressure and it didn't disturb him.
"He is in a really good moment and I'm not sure the armband had a big influence. He has been very good in the last few weeks, when he wasn't wearing the armband.
"It is a different thing to what Hendo and Milly are doing in the dressing room and around the club. Having it on the pitch is important but not in the same way."
Jurgen Klopp reveals Liverpool's New Year's resolution
Liverpool boss Jurgen Klopp has given his side a New Year's resolution to live up to in 2018.
The Reds face a hectic period of three games in six days either side of the turn of the year - first facing Leicester in the Premier League at Anfield on Saturday, then going to Burnley 48 hours later and then hosting Everton in an FA Cup third round Merseyside derby on January 5.
The Reds are unbeaten in 14 matches in all competitions, scoring 45 goals in those games and conceding just 10.
But speaking at his press conference ahead of the Leicester game , Klopp gave out a fairly simple message about what he wants to see from his Reds in the New Year.
"Scoring more, conceding less, easy!" he said when asked what his team's New Year's resolution should be.
"I would like to say we can play at our best more often.
"And when we aren’t at our best, we have to get the results.
"There is space to improve."