Liverpool failed to complete the signing of highly-rated Fulham youngster Fabio Carvalho after running out of time on deadline day.
The two clubs were locked in negotiations over Carvalho for much of Monday after Fulham rejected an initial £5m offer for the attacking midfielder, who is out of contract at the end of the season.
According to The Guardian, Fulham eventually accepted an £8.4m bid for the 19-year-old, who has scored seven goals in 19 appearances for the Championship club this season.
As part of the agreement, Liverpool were reportedly willing to send Carvalho back to Fulham on loan for the remainder of the campaign.
According to The Independent, Carvalho passed a medical with Liverpool but personal terms and further paperwork still needed to be completed when the English transfer window closed at 11pm (GMT).
Liverpool remain keen to sign the England U18 international and are expected to hold pre-contract negotiations with the player and Fulham in the coming weeks.
Fulham would be entitled to compensation if Carvalho joins another club at the end of his contract in July.
Speaking last week, Fulham manager Marco Silva was adamant Carvalho would remain at the club until the summer.
"Fabio will be with us until the end of the season," Silva said. "I would like to see him here for more years.
"From day one I have been trying to keep him. It is not a surprise that clubs are interested in Fabio. We are talking about a young player with big talent.
"It has been difficult for us to renew with him, but we are trying.
"It is always difficult with a player of this talent - even with a contract it is difficult to keep him, and without it is even worse. But Fabio will be with us until the end of this season."
Carvalho could be the second Fulham youngster to join Liverpool in recent seasons after Harvey Elliott, who signed for the Reds in 2019 when his contract expired at Craven Cottage.
An independent tribunal ordered Liverpool to pay Fulham an initial £1.9m fee for Elliott, a record at the time for a 16-year-old, which could rise to £4.3m depending on bonuses.
Liverpool will be hopeful of agreeing a deal for Carvalho, having allowed defender Neco Williams to join Fulham on loan for the remainder of the season.
Their failure to land him before the deadline means the club made just one significant signing in January, with winger Luis Diaz joining in a £37.5m move from Porto.
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