Liverpool pulled out of a deal for now former Bristol City youngster Lloyd Kelly after being put off by the Robins' valuation of the full-back.
Kelly signed instead for Bournemouth on Friday for £13m having been linked with the Anfield side, Arsenal and Southampton.
Although that sum is less than the £15m Aston Villa paid City for Jonathan Kodija in 2016, the club says it will rise to a 'club-record' fee.
And it is that fee that put Liverpool off signing the versatile defender, according to reports.
The Evening Standard's Liverpool correspondent David Lynch claims Jurgen Klopp is only willing to spend significant money on players who are guaranteed to make his starting lineup.
Lloyd Kelly was seen as capable of providing cover across his back line, but Liverpool pulled out of the running when they realised Bournemouth's willingness to pay £13m to force the deal over the line.
By the same principle, the Reds are said to no longer be interested in 19-year-old Ajax defender Mattijs de Ligt.
The club's interest in the talismanic centre-back has cooled significantly since last summer with the form of Virgil van Dijk and the emergence of Joe Gomez both contributing factors.
Some Liverpool fans have reacted with disappointment on social media to missing out on Kelly, but it is hard to argue with Klopp's rationale with a limited budget this summer.
Speaking about the move, Cherries boss Eddie Howe said Kelly's potential excited him.
He said to the club website: “Lloyd is an exciting talent and a player of real potential, while at the same time already possessing good experience for someone so young.
“He is athletic, versatile, physically excellent and has a very bright future ahead of him.
“I’m delighted that we have been able to strike so early in the summer and look forward to working with Lloyd during the coming seasons.”
Kelly made his league debut for City in December 2017 and played his first game for the England U21s last November.
He played 32 games for the Robins this season, scoring against West Brom in September, but he eventually fell behind Chelsea loanee Jay Dasilva in the pecking order.
