Liverpool’s attempt to sign Fabio Carvalho from Fulham has collapsed after the paperwork could not be completed before the January transfer deadline.
After holding talks throughout the day, an agreement was reached between the two clubs late on Monday evening, a little over an hour before the 11pm cut-off.
Carvalho, whose contract is set to expire at the end of the season, was to remain at Fulham on loan for the rest of the campaign as part of the deal.
The 19-year-old successfully completed a medical but personal terms and further paperwork still needed to be signed off after the deadline passed.
As the EFL has no late 'deal sheet' system, time ran out to finalise the move and the transfer subsequently fell through. Fulham are also understood to have considered the loan back element of the deal to be non-negotiable.
Despite the dramatic late collapse, the prospect of Liverpool agreeing an end-of-contract deal with Carvalho and compensation settlement with Fulham has not been ruled out.
Carvalho's Fulham contract is set to expire at the end of the season. Fulham will be owed compensation if he leaves Craven Cottage for another English club, with the fee set by tribunal if an agreement cannot be reached.
As Liverpool and Fulham agreed a fee prior to the late collapse, there is confidence that a deal for Carvalho to join in the summer can be reached.
The England Under-18 international has scored seven goals and four assists in 18 Championship appearances and is rated as one of the best teenage prospects in the country.
Carvalho made his Fulham debut under former manager Scott Parker last season and has since established himself as a regular under successor Marco Silva.
