The Reds have been tracking the Basel star for the past few months, but their reluctance to meet the Swiss giants’ valuation of their man looks to have put them out of the running.
With Juan Mata closing in on a move to Manchester United, the Blues made a swift £11m offer for the Egyptian, and now look set to seal a deal once settling personal terms with the winger – who is keen to join the club.
Although Brendan Rodgers is frustrated by the episode, he is said to be ready to focus on a swoop for Shaqiri.
The wide-man is some way from being a first-team regular at the Allianz Arena, and could be available on a short-term loan deal or for around £17m.
His arrival would boost Liverpool’s hopes of a top four finish, which could be derailed due to a lack of fit first-team regulars over the course of the remainder of the season.
Shaqiri himself is likely to be open to a deal, with regular playing time ahead of the World Cup a priority for him.