Liverpool are "increasingly unlikely" to win the race for Borussia Dortmund's Jude Bellingham this summer, according to a report.
Despite being at risk of missing out on Champions League football for the 2023-24 season, the Reds are still regarded as one of the frontrunners for the 19-year-old's signature.
Positive preliminary talks are believed to have been held with Bellingham's father, and the midfielder supposedly still views Anfield as his preferred destination for his next club.
However, with Dortmund protected by Bellingham's contract until 2025, the Black and Yellows could demand a club-record fee of at least £130m to sanction a sale.
With Dortmund refusing to budge on their stance, and no release clause available to be triggered in Bellingham's contract, interested parties will have to bow to the Germans' demands if they are to prise the England international away from Westfalenstadion.
© Reuters
As a result, The Athletic claims that Liverpool are falling behind in the race for Bellingham, with the Reds reluctant to enter a nine-figure bidding war for his services.
The report adds that Manchester City and Real Madrid have leapfrogged Liverpool in the race, and the Reds may feel that they cannot compete with their rivals' financial firepower.
With Jurgen Klopp known to be a big admirer of Bellingham, Liverpool have not closed the door on a move entirely, but the Etihad Stadium or Santiago Bernabeu is now seen as a more likely stomping ground for the player.
Manchester United have also shown an interest in signing Bellingham, although Dortmund could still try to tie him down to a new contract with a release clause.
Compared to last season when Liverpool won the FA Cup and EFL Cup, finished second in the Premier League and lost the Champions League final to Real Madrid, the Reds could be working with a significantly reduced budget this summer.
© Reuters
Aside from the Community Shield, Klopp's team will end the season without lifting a trophy, and the top four is out of their hands as they lie sixth in the table, seven points behind Tottenham Hotspur with two games in hand.
Failure to qualify for Europe's premier tournament would limit Liverpool's financial resources further, thus making it even more fanciful that Bellingham will represent the Merseyside club next year.
The former Birmingham City youngster has amassed 20 goals and 24 assists from 124 games in a Dortmund jersey since joining in 2020, including 10 goals and six assists in 34 appearances this term.
Liverpool are expected to lose Naby Keita and Alex Oxlade-Chamberlain on free transfers this summer, while Arthur's loan spell from Juventus is highly unlikely to be made permanent.
James Milner is also out of contract in three months' time, but Klopp has apparently pleaded with the hierarchy to offer the 37-year-old a new deal for the 2023-24 season.