The France international has been under the supervision of staff from the club in Boston during their pre-season American tour after a fee was agreed with the Super Hoops.
But now it has emerged that the 27-year-old’s switch is off, after problems were discovered.
Potential long-term issues are understood to have been detected by doctors, which has caused the Anfielders to pull the plug on the swoop.
Remy had agreed personal terms with the Merseyside outfit, but mysterious delays – put down to paper work problems – had seen the transfer stall.
The former Newcastle loanee now looks set to return to QPR.
Arsenal may now move after their raid for the player was called off as he opted for Liverpool, while Tottenham and Everton have also been linked with him.
The Gunners could offer £8m for him due to being a Champions League side, but the latter two would have to make bids of around £11m to trigger a separate release clause in his contract.
The Reds are yet to comment on what the exact problem is.