Liverpool's hopes of landing Fernando Torres have hit a setback with Atletico Madrid refusing to budge from their £27million asking price.
The Spain striker, 23, has emerged as a prime target for Kop boss Rafa Benitez this summer.
However, Torres' club have insisted the star player will only leave if the buy-out clause in his contract is triggered.
The Reds are prepared to offer Luis Garcia — a former Atletico player — as a makeweight in the deal but the sides are still some distance apart in their valuation.
Benitez knows if he gives them the asking price it would blow a huge hole in his summer transfer budget.
And Liverpool sources have suggested they will not go the full way — even though they are desperate to sign a world-class goalscorer.
Yet Atletico are unlikely to climb down as they do not want to part with their prized asset despite the fact Torres has indicated he fancies a move to Anfield.
Speaking last month, president Enrique Cerezo said: "We always have the same problem.
"Every year, either at the start of the season, midway through or at the end.
"It is the same. Torres is an Atletico Madrid player and I think he is going to remain with the team for many years. He is very well at Atletico Madrid, the fans want him and we want him.
The Spain striker, 23, has emerged as a prime target for Kop boss Rafa Benitez this summer.
However, Torres' club have insisted the star player will only leave if the buy-out clause in his contract is triggered.
The Reds are prepared to offer Luis Garcia — a former Atletico player — as a makeweight in the deal but the sides are still some distance apart in their valuation.
Benitez knows if he gives them the asking price it would blow a huge hole in his summer transfer budget.
And Liverpool sources have suggested they will not go the full way — even though they are desperate to sign a world-class goalscorer.
Yet Atletico are unlikely to climb down as they do not want to part with their prized asset despite the fact Torres has indicated he fancies a move to Anfield.
Speaking last month, president Enrique Cerezo said: "We always have the same problem.
"Every year, either at the start of the season, midway through or at the end.
"It is the same. Torres is an Atletico Madrid player and I think he is going to remain with the team for many years. He is very well at Atletico Madrid, the fans want him and we want him.
"Neither is he for sale nor do I think he is going to leave."
If the Reds fail to land Torres it would be another blow in what has been a frustrating summer for the Kop.
The millions of pounds promised by new owners George Gillett and Tom Hicks have yet to be turned into big-name signings.
Liverpool's interest in Charlton's England striker Darren Bent has also faded as they do not believe he is worthy of the £17m price tag.
Benitez hopes to off-load French striker Djibril Cisse to Bolton for around £6m.
This will free up funds to spend on West Ham & Israeli midfielder Yossi Benayoun, 27.
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