Sky Sports News sources understand that Liverpool forward Milan Jovanovic has turned down a move to Wolfsburg.
The Serbian has failed to make an impact at Anfield since arriving from Standard Liege on a free transfer at the beginning of the season and the Premier League club are prepared to sell.
Liverpool boss Kenny Dalglish, who succeeded Roy Hodgson at the beginning of January, is reported to be trying to raise funds in order to fund improved bids for Ajax striker Luis Suarez and Blackpool captain Charlie Adam.
Skysports.com reported on Wednesday that Wolfsburg's former England manager, Steve McClaren, had made an offer, rumoured to be £6million, to Liverpool's parent company, the Fenway Sports Group.
But Jovanovic has rejected the opportunity to follow former Liverpool team-mate Ryan Babel in moving to the Bundesliga after the latter joined Hoffenheim earlier this week.
Jovanovic had hoped that the arrival of Dalglish would provide an opportunity to kick-start his career on Merseyside.
However, illness and injury permitting, the 29-year-old has only featured in the defeat at Blackpool since the sacking of Hodgson.
The deal to sign Jovanovic was effectively in place last season when Rafa Benitez was still in charge at Anfield and so it has always been questioned whether he had a future.
Seventeen appearances in total at club level have suggested that the versatile attacker has struggled to adapt since joining Liverpool, while seven of those outings have come in the Europa League.
Wolfsburg are eager to increase their offensive options after selling Edin Dzeko to Manchester City in a £27m deal at the beginning of January.
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