Reds had been monitoring free-scoring Armenian for most of last season.
Liverpool have missed out on their first-choice transfer target of the summer after Shakhtar Donetsk midfield player Henrikh Mkhitaryan agreed to join Borussia Dortmund instead, according to reports on BBC Sport Online.
The Reds had been chasing the Armenia international for some time now, with a view to bringing the in-demand 24-year-old to Anfield when the transfer window reopened at the start of the month.
However, despite being happy to meet the Ukrainian champions’ £21.5 million asking price for the attacking midfield player, who netted a league-record 25 goals in just 28 domestic fixtures last season for his club, the Merseyside giants never even got to open discussions with the player.
Instead, Mkhitaryan has instead decided to join the Uefa Champions League finalists, a move that will be of huge disappointment to Liverpool head coach Brendan Rodgers, who had banked on being able to persuade the three-time Armenian Footballer Of the Year to move to Anfield this summer.