The Premier League side had targeted the goalscorer as a potential replacement for the wantaway Luis Suarez.
The 24-year-old however, has no desire to leave Diego Simeone’s side and hopes to sign before the end of this month.
The Brazil international’s current deal at Vicente Calderon runs out in 2015, and according to Marca, the attacker is likely to put pen-to-paper on a new contract until 2017.
The Merseysiders are, however, confident they can sign Granada full-back Guilherme Siqueira before the transfer window shuts.
The Liverpool Echo newspaper claim that the Reds will make a move for the 27-year-old, who is also interesting Real Madrid, in the coming days.
It is believed that Brendan Rodgers’ men will table a formal offer of £5m.
David Luiz looks to be one step closer to joining Barcelona, with reports suggesting that the defender will try to force through a move.
The Daily Mail believe that the defender’s agent will meet with representatives from the west London club this week, and ask, formally, to leave Stamford Bridge.
The Premier League side have already rejected a €25m (£21.5m) bid from the Blaugrana for the Brazil international.
Barca want to pay €35m (£30m) for Luiz, whilst Roman Abramovich doesn’t want to see him leave for anything less than €50m (£43m).
Reports in the Spanish press claim that Italian side Fiorentina could try and make a move for Xabi Alonso.
The Real Madrid midfielder’s current deal expires next summer, and has so far been reticent to pen a new contract at Santiago Bernabeu.
The former Liverpool man has been linked with a return to Anfield and a possible switch to Juventus.
But Cadena SER believe that the Viola will try and persuade the 31-year-old to join them next summer on a free transfer.
The Tuscan club have already made some marquee signings this year, bringing in Mario Gomez from Bayern Munich and Joaquin from Malaga.
Sevilla President Jose Maria Del Nido has insisted that whoever wants Geoffrey Kondogbia has to pay his release clause.
Both Real Madrid and Juventus are said to be interested in the youngster, but the club’s owner has claimed that only €20m will do.
“Kondogbia is not on the market,” he told reporters. “But whoever wants him has to pay his €20m clause.
“But please, any team that tries to sign him – don’t. We will consider it an attack.
“I’ve already reached an agreement with [third-party owner] Doyen and Kondogbia will not go this summer.”