The Chelsea forward is demanding £80,000 a week from Liverpool if he is to join in January while also insisting that he must play as a striker through the middle.
The Reds have been interested in signing him since the summer and after checking the strikers availability following Chelsea’s appointment of new manager Rafa Benitez, they looked set to follow up their interest.
However there is a feeling at Anfield that Sturridge hasn’t done enough over the last year to justify his demands, scoring just five times for the European Champions since last December.
Liverpool have spent big on young English talent in recent years without seeing the results they had hoped for. Andy Carroll, Jordan Henderson, and Stewart Downing who Anfield legend Kenny Dalglish brought to the club in his most recent time in charge are examples of such players who have failed to deliver.
The Red’s have also been linked with moves for the likes of Arsenal’s Theo Walcott and Blackpool’s Thomas Ince in the January transfer window in a bid for manager Brendan Rodgers to bolster his squad.