Liverpool remain confident of completing a pre-contract agreement to sign Fabio Carvalho from Fulham on a free transfer in the summer.
Jurgen Klopp’s side ran out of time as they attempted to sign the 19-year-old on Monday and loan him back to Fulham for the rest of the season.
Carvalho will now see out the remaining six months of his contract at Craven Cottage, but discussions will continue as Liverpool attempt to agree compensation with the Championship side.
If they do not, a fee will be decided by tribunal – similar to the situation which saw Harvey Elliot move from Craven Cottage to Anfield in 2019.
Liverpool were close to completing Carvalho’s signing on Deadline Day, but were unable to complete the necessary paperwork and submit it in time.
The Championship side insisted they wanted both a sizeable transfer fee for Carvalho, and for the attacking midfielder to remain at the club for the rest of the season.
It appeared Liverpool had met those demands, but both Carvalho’s move to Anfield and his temporary switch back to Fulham needed to be completed before the deadline, and that was ultimately not possible.
Liverpool were one of a number of clubs that were interested in Carvalho, who is now set to leave Fulham at the end of his contract in the summer.
The club would be entitled to compensation set by a tribunal should the teenager join another English side at the end of his contract, while continental clubs would only need to pay a nominal fee.
Carvalho made his first-team debut for Fulham last season and has gone on to establish himself this campaign with seven goals and four assists in 18 Championship appearances.
Speaking last week, Fulham boss Marco Silva insisted Carvalho would not leave the club this month, despite it potentially being the final opportunity to receive a transfer fee for him.
“Fabio will be with us until the end of the season,” Silva said. “I would like to see him here for more years.
“From day one I have been trying to keep him. It is not a surprise that clubs are interested in Fabio. We are talking about a young player with big talent.
“The situation is not easy because he is in the last year of his contract, but that is the reality. It is out of our plans for him to leave the club in this window.
“It has been difficult for us to renew with him, but we are trying.
“It is always difficult with a player of this talent – even with a contract it is difficult to keep him, and without it is even worse. But Fabio will be with us until the end of this season.”
Phillips, Williams leave on loan
Liverpool defenders Nat Phillips and Neco Williams have completed loan moves to the Championship until the end of the season.
Phillips has joined Bournemouth, while Williams has signed with Fulham.
Liverpool hoped to sell Phillips permanently but it is understood they have taken an arrangement fee of £1.5m, plus an additional £250,000 if the Cherries get promoted from the Championship, because of the offer of regular game time.
Having had an earlier £7m bid turned down, Newcastle made a request for a loan with a commitment to buy if they stayed up, while Leicester also wanted Phillips on a short deal, but with playing time limited at both they were not seen as attractive propositions by the club.
Burnley were also interested but are unlikely to make any move until James Tarkowski, whose contract expires in the summer, leaves.
Phillips told Sky Sports News in December he was ready for a move away from Liverpool this month.
For Liverpool, there was no rush to sell Phillips, who made 17 league appearances for the Reds last season, after he signed a new deal in August that keeps him at Anfield until 2025.
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