Aston Villa's Gareth Barry has been a constant target for Liverpool throughout the summer but his current employers issued a statement this evening confirming the influential captain is to remain with the midlands club.
The England midfielder had set his heart on making the move to Anfield and linking up with his close friend Steven Gerrard in the centre of the park.
But Villa announced the 27-year-old will remain at the club after Liverpool failed to reach a deadline to meet their €23million valuation of the player.
"This evening, Aston Villa can announce that Gareth Barry will be staying with the club following the interest from Liverpool over recent months," the Villa statement said.
"During discussions in the past few days, a final deadline to conclude this episode was set that all parties were aware of and agreed to. This deadline has now passed and so Gareth will remain with Villa."
Barry was desperate to experience Champions League football with the Reds after a decade at Villa.
But now manager Martin O'Neill hopes the player will settle down and attempt to achieve that dream at Villa, who finished sixth in the Barclays Premier League last season.
Liverpool were thought to have been involved in new talks with Villa after Reds boss Rafael Benitez reiterated his desire to sign Barry, who has been the subject of an angry summer transfer saga.
Liverpool previously had four bids turned down for the player.
It is understood Liverpool's latest approach materialised because Benitez has bids on the table for Jermaine Pennant and Yossi Benayoun. Blackburn want winger Pennant while Manchester City and West Ham are targeting Benayoun.
"We knew that we could only spend money by selling players and we have been doing this (for Robbie Keane)," said Benitez yesterday.
"We are still trying to sign the players that we need and if we need to sell someone now, OK, we will do so. If we can do it (the Barry deal) before the end of the transfer window, we will continue to try."
It had been thought Steve Finnan could be used as a makeweight in the Barry deal, which would have taken the offer over the €23million that O'Neill was insisting on.
Barry has played in a friendly at Walsall and the second leg of Villa's Intertoto Cup success over Odense which has placed them in Friday's UEFA Cup qualifying draw.
Barry had not been cup-tied for the Champions League by playing in the Intertoto competition.
Villa fans booed Barry at Walsall, but at the weekend staged a remarkable level of support for him.
After the match O'Neill was linked with a possible new contract offer for the player and suggested that Villa "valued Barry more than Liverpool did".
