Hertha Berlin coach Pal Dardai has decided to pass on re-signing Allan from Liverpool.
The Liverpool midfielder spent last season on-loan with Hertha and was keen on returning.
BILD says Liverpool were willing to waive their loan fee for the Brazilian to return, but Dardai has decided to turn down the proposal.
Dardai, instead, is ready to focus on local youngster Arne Maier (18).
A move to Belgium or Holland is now mooted for Allan, 20.