Liverpool tried to sign Brazilian whizkid Rodrygo Goes, the player's agent Nick Acuri has confirmed.
Rodrygo is the latest super talent of Santos that has caught the eye of many European giants since debuting for the first team in November.
The 17-year-old scored nine goals in 31 appearances, including a hat-trick, this season.
The Reds were involved in the chase but, like in Champions League final last month, lost out to Real Madrid.
"We had offers from Liverpool, PSG and Barcelona, but they did not reach what Santos asked for," Acuri told Esporte Interativo.
"Fifteen days ago, Madrid approached me, they met with the president and made their proposal, reaching the value that Santos always wanted.
"Last week, the player did his medical with Madrid and then Santos gave the green light. The agreement is that he stays [at Santos] until June 30, 2019."