The Reds have been heavily linked with a stunning loan move for the Colombian superstar in recent days as they step up their pursuit of a replacement for Luis Suarez.
It’s understood that the Merseysiders made an official enquiry a few days ago, but the Ligue 1 heavyweights have dashed their hopes by insisting that the 28-year-old is close to a switch to the Bernabeu.
Although nothing is yet concrete, Liverpool will not be taking their pursuit any further as the South American ace is thought to be keen to follow former team-mate and compatriot James Rodriguez to Madrid.
Manchester City have also been linked with and were, like Brendan Rodgers’ side, looking at a season-long loan with a view to a full transfer.
Falcao only joined Monaco in a £50m deal last year, but he’s failed to settle at the Stade Louis II.