Jurgen Klopp could miss out on Gremio star Luan, with the Brazilian reportedly set to extend his contract at the Porto Alegre club.

According to The Mirror, Liverpool had been keeping tabs on the forward for as long as 12 months and was hopeful of bringing him to England this summer.

But reports from Zero Hora state thatLuan has had a change of heart and the mooted £26m deal will be scrapped.

The Brazilian outlet claims that Luan is in the latter stages of contract discussions with the Campeonato Brasileiro club.