Barcelona have abandoned their bid to sign Philippe Coutinho.
According to Catalan radio station RAC1, Nou Camp chiefs believe it is impossible to prise him from Anfield.
Liverpool have rejected a string of bids - the latest worth £118m - from Barca for Coutinho.
Owners Fenway Sports Group issued a statement earlier this month, insisting they would not sell Coutinho in this transfer window.
FSG even rejected a transfer request from the Brazil international.
Coutinho emerged as a key target for Barcelona following Neymar's world-record move to Paris St-Germain.
In the unlikely event that Coutinho does join the club then Liverpool will move for Real Madrid's Mateo Kovacic.
That is according to Spanish outlet Don Balon, who claims the Croatia international is in the club's sights.
The 23-year-old is under contract at the Bernabeu until 2021.
He has been a fringe figure at Real, with Toni Kroos and Luka Modric ahead of him in the pecking order.
Liverpool are ready to pounce for Virgil van Dijk if Southampton decide to sell.
Saints chairman Ralph Krueger insisted last week that Van Dijk would not be leaving St Mary's this summer.
Lazio centre-back Wesley Hoedt is set to join the south coast club this week.
Liverpool hope that could result in Southampton changing their stance on Van Dijk.
But, according to the Liverpool Echo, Van Dijk is Jurgen Klopp's only defensive target.
