Former Bundesliga striker Jan Aage Fjortoft has claimed Liverpool do not have the money to rival Manchester United for Jadon Sancho at present.
Manchester United are keen to sign Sancho from Borussia Dortmund, but it is unclear if they are willing to meet the German side's asking price.
Liverpool have been floated as an alternative option for Sancho, but Fjortoft has ruled the Reds out of the race at present after speaking to people involved.
Despite winning the Champions League followed by the Premier League and restricting their spending last summer, Liverpool do not have the money to sign Sancho, Fjortoft insists.
The former Bundesliga hitman admits Liverpool boss Jurgen Klopp is a big fan of the Dortmund star, but stressed the Reds do not yet know how much they will generate going forward.
Fjortoft wrote on Twitter: "Re rumour of Sancho to Liverpool.
"Have talked to people very close to the process both in Liverpool and in Dortmund.
"Klopp would love to have Sancho, but don't have the money now.
"Liverpool can't invest anything before they know what kind of money they have."
Dortmund have stuck a €120m asking price on Sancho's head and are reluctant to come down from the figure.
The Ruhr side are keen to sanction a departure for Sancho before 10th August if a deal is to happen, after which time they expected to close the door on a sale.
