Jurgen Klopp’s side thought they had a deal for Brighton midfielder Moises Caicedo in the bag, but the Ecuadorian refused to move to Anfield and wants only Chelsea.
The Blues are now close to reaching an agreement with Brighton which would see a fee of £115m paid to sign Caicedo.
Chelsea also want to sign Liverpool target Lavia from Southampton and have indicated they will pay £55m for the Belgian.
Liverpool are keen not to lose out on both players and are now expected to match Chelsea’s bid.
The Reds were reluctant to meet Southampton’s £50m asking price for Lavia and have seen three offers rejected.
Now they are preparing to pay £5m more than the £50m price tag in order to take Lavia to Anfield.
Lavia, 19, has made just 29 appearances in the Premier League and was part of a Southampton side that were relegated last season.
He may soon be thrust into a side hoping to compete at the very top end of the league table this term.
