Liverpool target Joel Matip 'rejects new contract'

Liverpool target Joel Matip has rejected the offer of a contract extension with current club Schalke 04, according to German newspaper Bild.

The 24-year-old defender is out of contract in the summer and could leave on a free transfer, although Reds manager Jurgen Klopp is preparing to submit a bid of £4m in an attempt to prise him away from the Bundesliga next month.

Schalke coach Andre recently 'ruled out' a sale of Matip in January as he looks to maintain a push for the top four in the second half of the season.

The newspaper claims that Schalke will submit an improved offer to Matip in the coming weeks.