Liverpool appear destined to see Lazio transfer target Modibo Diakite slip away from their grasp.
The Reds had been in discussions with the Serie A outfit over a proposed move to take Diakite, who is out of contract at the end of the season, to Anfield on a free transfer.
Inter and Juventus were also vying for the 25-year-old's signature, however Lazio will pull the plug on a move by persuading Diakite to sign a new contract.
Diakite is seen as central to Lazio's plans and has established himself as a regular in the first team.
Italian football site Football Italia revealed that Lazio President Claudio Lotito will offer Diakite a salary of £800,000 as an incentive to stay.
This comes as a huge blow to Liverpool, who are trying to plan for the future as Jamie Carragher approaches the end of his career.
A serious shin injury has restricted Diakite to just one appearance for Lazio this season.
Source: Daily Express
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