Barca's £118m offer for Coutinho rejected

The initial £113m fee could have risen to £118m based on the 25-year-old's playing time at the Camp Nou.

The Spanish giants are refusing to give up on signing Coutinho and are eager to complete a deal so that the Brazilian can link up with Lionel Messi and Luis Suarez.

Earlier on Friday, it was reported that negotiations were still ongoing between the two clubs despite Reds boss Jurgen Klopp saying his prized asset is not for sale at any price.

Coutinho formally submitted a transfer request last week in the hope of forcing through a dream move to the Camp Nou. 

Ernesto Valverde is now determined to improve his squad following the embarrassing 5-1 aggregate defeat by rivals Real Madrid in the Spanish Super Cup.