Racing Santander have ended their interest in loaning Liverpool midfielders Nabil El Zhar and Sebastian Leto.
El Zhar and Leto - both 21-years-old - have struggled to secure regular first-team football since arriving from St Etienne in 2006 and Lanus last summer respectively.
Racing president Francisco Pernia had confirmed that the two clubs had held discussions about a January switch.
But after a meeting between Pernia and coach Marcelino Garcia Toral, the Spanish side have decided not to continue their interest.
The reasons behind the decision are reportedly down to Toral's keenness to bring in experience, while further speculation suggests Racing were reluctant to strike a deal which included Ezequiel Garay.
The Reds are thought to be interested in signing the defender for next season, but Racing have denied that Garay is set to leave Spain.