The Daily Mail says the 19-year-old playmaker has just one year left on his deal with the Bundesliga club and is no closer to agreeing fresh terms.
Dortmund had been willing to sell the USA international this summer but have been unable to recruit a replacement.
They will therefore put the brakes on any potential deal.
That would be a boost for Liverpool who are not expected to add to their squad before Thursday's transfer deadline.
The Anfield club could then re-enter the bidding in January, or attempt to agree a deal that will see Pulisic agree to join next summer.