The Senegal international was heavily linked with a move away from Vicarage Road after Watford failed to ensure Premier League safety last season.
Liverpool were credited with an interest in the 22-year-old winger and a reunion with national team captain Sadio Mane was mooted for the Watford star, but the transfer never came into fruition.
Now, Seydi, the agent of Sarr, has revealed that the Reds actually had agreed personal terms with the winger and he was close to joining.
Seydi explained that he even asked Mane to find an apartment for Sarr, but the transfer did not go through as Liverpool were unable to raise the €40m that Watford wanted for his sale due to the financial constraints in the face of the global situation.
“With Liverpool, a few days ago, we were at the stage of signing the contract to bind Ismaila Sarr to the Reds“, Seydi told African outlet Panafricanfootball.com.
“Everything was set, the monthly salary and the length of the contract.
“I even asked Sadio Mane to find him an apartment.
“But in the end, the English club were unable to put €40m on the table to finalise the deal.
“That is to say, if the English clubs, which once hosted the transfer window, are having difficulty raising funds, this reflects the depth of the crisis affecting football.“
Though Sarr has been forced to continue with Watford, it remains to be seen if Liverpool will return for the winger in the future.