The Dubai Royal Family have dropped takeover interest in Liverpool.

The Mail on Sunday says the Dubai Royal Family have ended their interest in a £500million offer to buy Liverpool, leaving the controversial American owners in charge until at least next July.

The high asking price and financial downturn in Dubai have persuaded the family of Sheikh Al-Maktoum to pull the plug on the deal that Amanda Staveley, who brokered the Abu Dhabi takeover at Manchester City, has been mediating.

The Al-Maktoums indicated they would pay around £500m, but the reluctance of the Americans to sell to them, combined with the economic climate, has dashed their enthusiasm.