Paris Saint-Germain are close to an agreement for Liverpool-linked Lucas Beraldo, according to one report.
The 20-year-old defender had been named as a possible target for the Reds ahead of the transfer window re-opening next month, as Jurgen Klopp contends with mounting injury issues.
Liverpool had already earmarked at least one defensive addition for 2024. However, the season-ending injury to Joel Matip has only furthered the need for reinforcements at the back.
The Reds have been linked with a number of centre backs ahead of January and had even been named as the favourites in the race for Sao Paulo's Beraldo, who has been impressing in South America.
However, according to Santi Aouna, it is actually PSG who will complete a winter deal for the Brazil youth international.
The Foot Mercato journalist wrote on X: "PSG is confident of completing the arrival of Lucas Beraldo for 20+5M € bonus. Close agreement between the parties. Possible medical examination next week."
Aouna adds that PSG are also in advanced negotiations with Corinthians for Gabriel Moscardo, an 18-year-old midfielder who has also been loosely linked to Liverpool in recent weeks.
While Beraldo may now be off the table, whether Liverpool make any signings next month remains to be seen.
Jurgen Klopp has publicly played down Liverpool's chances bringing in a replacement for the injured Matip. However, another report claims that the Reds are open to deals 'if the price is right'.
Goncalo Inacio (Sporting CP) is another centre back who has been regularly linked, while Piero Hincapie (Leverkusen) and Leny Yoro (Lille) too have been touted as potential targets.
Anfield Watch understands that revamping the defence is the priority for the Reds in 2024, though a big-money arrival may be more likely in the summer.
Liverpool do have recent form for a January deal, despite Klopp's comments, having signed Luis Diaz and Cody Gakpo in the previous two years.