Swansea resigned to losing Sigurdsson to Liverpool
The Daily Mail says the club's hopes of completing the signing of Sigurdsson appear to be over.
Swansea had agreed a £6.8million fee with Hoffenheim for the Iceland midfielder, who scored seven goals in 17 appearances during his loan spell in south Wales, as well as personal terms.
But Brendan Rodgers' exit for Liverpool led Sigurdsson to admit he had reservations about making a permanent switch to the Liberty Stadium.
And it is understood that the deal will not go ahead, which will alert Rodgers, who has admitted an interest in signing the former Reading man should he not complete his move to Swansea.