President Massimo Moratti has revealed the Italian champions have baulked at Liverpool's asking price for the 26-year-old, thought to be around £25million.
"Mascherano is a strong player, but it is unlikely that he will arrive," he said.
"He simply costs too much and it is not certain that Liverpool will sell.
"Melo is an intriguing idea and one that we are working on."
The Brazil international, also 26, could be made available as he has struggled to hit top form since his £20million move to Juve from Fiorentina last summer.