Barcelona last night blamed Liverpool winger's Steve McManaman's "impossible" pay demands for the collapse of the forward's proposed £12 million move to Spain.
Barca vice-president Juan Gaspart said the transfer was set to go through but McManaman had asked for too much money.
"McManaman is asking for a huge amount of money," said Gaspart.
"It's just impossible for us to pay that much to one player," he said, referring to what is reported to be a demand for £2 million a year by the 25-year-old England international.
McManaman's adviser Simon Fuller said: "The negotiations are as good as over. We asked for what we considered a reasonable wage in terms of European football.
"If Barcelona are prepared to pay the £12 million transfer fee, then they must also be prepared to pay a comparable amount in wages."
Barcelona's new director of football Bobby Robson watched McManaman in action during Liverpool's 2-1 defeat by Leicester on Wednesday night.
And he is believed to have then agreed a £12 million fee with Liverpool vice-chairman Peter Robinson.
McManaman flew to Barcelona yesterday to thrash out personal terms but the Catalans claim his move broke down as a result of his excessive pay demands.
The player has less than two years of his Anfield contract to run, after which he is entitled to move to the continent for nothing under the Bosman ruling.
McManaman has never hidden his desire to play abroad at some point in his career. His timing is quite probably perfect, as his love affair with the Merseyside public has shown distinct signs of wear and tear in recent months.
On Wednesday, during and after Leicester's improbable success, it became clear that his relationship with those who once worshipped his every touch had suffered perhaps irreparable damage. As he attempted to instill a sense of urgency and purpose into those around him, he was constantly jeered by a vociferous section of the Anfield crowd.
Although Evans spent much of the summer defending some of his younger players - the so-called Spice Boys - against accusations that they were more interested in socialising than in winning matches, McManaman has become the target for a swelling band of malcontents who clearly feel he is not pulling his weight.
Barcelona have tried twice before to sign McManaman - immediately after Liverpool's 1996 FA Cup final defeat by Manchester United and shortly after last summer's Euro '96 tournament.
If the money problems are sorted out and a deal is eventually concluded, it would mean that Liverpool would, at a stroke, recover their outlay on £11.7 million on the four players signed this summer - Paul Ince, Oyvind Leonhardsen, Karl Heinz Reidle and Danny Murphy.
And, having already lost John Barnes this week, Liverpool manager Roy Evans will no doubt be looking to add strength to his squad. With the former England international defender Neil Ruddock unlikely to play before Christmas because of a serious knee injury, his first signing is likely to be the £3 million-rated Inter Milan centre-back Massimo Paganin.
Barcelona are meanwhile on the point of signing Brazilian star Rivaldo Barboza Ferreira from Deportivo La Coruna to replace FIFA world player of the year Ronaldo, who has joined Inter Milan.
Spanish television reported the £16 million move - the second highest transfer fee in history behind Ronaldo's move from Barcelona to Inter Milan - was set to be completed in time for today's transfer deadline for the Champions' League.
