Borussia Dortmund have ended contract talks with Liverpool target Philipp Degen after the player failed to respond to their offer.
Degen's current contract expires in the summer and he is free to leave the German club at the end of the season.
Liverpool have been strongly linked with a move for the Swiss international with Reds boss Rafa Benitez admitting he has lined up a deal for a mystery free agent.
That free agent is reported to be full-back Degen, who is currently out of action through injury.
Dortmund were hoping to keep the 25-year-old in Die Bundesliga, but it appears he is on his way out after snubbing their offer of a new deal.
The club's managing director Hans-Joachim Watzke confirmed talks had broken down and they had given up on keeping the player.
"We made him a proposal but still there has been no concrete response from either him or his advisors," Watzke told Bild.
"We do not want to wait any longer. For us, the issue is closed."