The Senegal international looked set for an August move to Anfield, after an impressive 2026/27 season at Selhurst Park, finishing as Palace’s top scorer in all competitions with 21 goals at Selhurst Park.
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Palace boss Pierre Sage has looked to ease Sarr back into his plans, after admitting the former Watford man wanted to move on, and the team have also struggled under their new French coach.
Liverpool are still keen on a renewed offer, but they stick to their £40M stance, as Palace prepare contract talks to keep him.
The 28-year-old has been in talks over an extension recent weeks, with Palace ready to offer a salary increase and stretch his deal from 2029 to 2031.