The Germany international has been mulling a move to Anfield, but his £125,000 a week wages were a huge stumbling block and Bayern indicated they weren't prepared to help push the deal through.
Bayern Munich sporting director Christian Nerlinger said no players would be leaving his club.
"Bayern Munich are not a superstore for other clubs to come and help themselves to players," he said. "No player will be leaving and they will certainly not be leaving on loan." The stance will be a blow to Gomez.
The 25-year-old's agent Uli Ferber said: "When a club like Liverpool enquires, their interest cannot be pushed off the table."