Wolves have removed a clause in Matheus Nunes' contract that would have allowed him to join Liverpool for £44million.
Liverpool manager Jurgen Klopp is on the hunt for a new central midfielder and is thought to be an admirer of the 24-year-old. Yet Wolves swooped to sign Nunes from Sporting Lisbon in a club-record £38m deal last summer, beating Liverpool to his signature.
The Reds could have landed Nunes for £44m this summer due to a clause in his contract, but that has now been removed. As such, Klopp and his recruitment team are now looking at other central midfielders - including Brighton talent Moises Caicedo.
As reported by The Telegraph, Wolves are free to set Nunes' price this summer if another club comes calling. They are expected to demand at least £50m for the player, which may prove too much considering his minimal contribution this season.
Nunes has failed to score during his 25 Premier League appearances, providing just a single assist. That has left Wolves in a perilous position, with Julen Lopetgui's side sitting two points above the relegation zone. They drew 1-1 at Nottingham Forest on Saturday.
Perhaps the only way for Liverpool to get Nunes on the cheap is if Wolves are relegated this season. If Wolves stay up, that will allow them to keep hold of a player described as 'one of the best in the world' by Manchester City boss Pep Guardiola last year.
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With Nunes out of the equation, Liverpool will focus on their other targets. The man at the top of their shortlist is Jude Bellingham, the 19-year-old midfielder who impressed for England at the World Cup in Qatar and is already one of Borussia Dortmund's best players.
Yet Dortmund are under no pressure to sell Bellingham this summer and could demand around £130m for his signature, which may prove too expensive for Liverpool. Another target is Chelsea midfielder Mason Mount, who is a more realistic option.
Mount, 24, is yet to agree a new contract with the Blues and has fewer than 15 months left on his existing deal. As such, Chelsea - who need to raise some funds this summer after spending more than £500m on players during the last 12 months - may sell Mount.
It is unclear how much Chelsea will demand for Mount, but it won't be anywhere near as much as £130m. Liverpool are also interested in Mount's Chelsea team-mate Conor Gallagher, a 23-year-old who has the energy and dynamism to suit Klopp's style of play.
In terms of Caicedo, the 21-year-old is enjoying a breakthrough season with Brighton. The emerging talent has featured in all but one of their Premier League games this term - starting 24 times - and scored for Ecuador at the World Cup in Qatar.
Yet it will be tricky to prize him away from the Amex. Arsenal offered £70m for Caicedo in January - with the player keen to move - but Brighton refused to budge. The Seagulls then tied him down to a new long-term deal last month.
