The 21-year-old's time at Stamford Bridge has been limited by persistent fitness problems since signing for the side from Southampton in a £53M move in 2023 when Mauricio Pochettino was in charge.
He has made 29 appearances but missed 88 matches during two and a half seasons at Chelsea, and now it has been revealed that the club were keen to offload him this summer.
As reported by the ESPN, Chelsea were willing to hand over Lavia and receive less cash as part of an exchange for Garnacho, who eventually joined the Blues in a deal worth around £40M.
Lavia was limited to just one appearance during his first season at Chelsea, and only played 16 league games last term. The midfielder rejected Liverpool to move to west London, a decision that will now bring great relief to the Reds, who dodged a bullet.
Garnacho endured an underwhelming start to his Chelsea career, going six games without a goal or an assist. He has since scored against Qarabag in the Champions League in what was a hard fought 2-2 draw.
The winger has been in the starting line-up for Chelsea's last five Premier League matches and assisted two of their three goals in a victory over Wolves before the international break.
He will next get his chance against Burnley this weekend as he aims to earn more goal contributions.