Fiorentina sporting director Pantaleo Corvino has confirmed Liverpool's Emiliano Insua will not be joining the club.
Negotiations between Fiorentina and Liverpool had progressed well, but questions over the player's wage demands have scuppered the deal, and the Italians have pulled out.
"Insua? It has been a transfer that has gone on for a long time because of the player," he told the press.
"I had dinner with Liverpool's sporting director until two in the morning. The player is staying at Liverpool.
"The reasons are linked to the player. His demands are high for us. We will not sign Insua."
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