Liverpool agreed a fee with Brighton for Caicedo on Friday and were hopeful he would head to Merseyside for a medical and to complete the move.
The Ecuador midfielder however prefers a switch to Chelsea and is making it his priority, leaving Liverpool waiting.
Chelsea are now working to make sure they have a full agreement with Brighton and are in talks to close the deal.
The Blues have already put an agreement in place with the midfielder, who is set to sign a contract at Stamford Bridge to run until the summer of 2031.
The contract will also contain an option for an extension, to run until 2032.
Liverpool now look at the mercy of events in their efforts to sign Caicedo, with Chelsea in pole position.
The Reds are desperate for a defensive midfielder after selling Fabinho without already having brought in a replacement.
