A deal for Dubai International Capital to buy a stake in Liverpool appears to have collapsed.

Liverpool co-owner Tom Hicks has "decided to terminate" discussions with DIC, the investment arm of the Dubai government, over the possible purchase of a minority stake in the club.

Hicks issued a statement this evening which read: "Based on a meeting held earlier today in Dubai between my representatives and officials of Dubai International Capital LLC, as well as other recent contacts between us and them, I have decided to terminate any further discussions with DIC regarding their possible purchase of a minority stake in Kop and, in turn, in the club."

DIC have accepted that Hicks is unlikely to sell his share in Liverpool in the near future, despite the fact that fellow American George Gillett is understood to have agreed in principle to  sell 49 per cent of his 50 per cent stake to DIC, and the other 1 per cent to Hicks to give the Texan a controlling interest.

Today's talks between DIC and Hicks had focused on how a joint relationship would work and earlier it had looked as though much progress had been made when DIC released a statement stating that it was in 'advanced' talks with the American.