It looked certain that Liverpool were going to sign Fulham youngster Fabio Carvalho on deadline day amid reported transfer interest from Leeds United.
The Reds had reportedly agreed a fee with the Cottagers for attacking midfielder Carvalho, who is out of contract at the end of the season, just hours before the 11pm cut-off point on Monday evening.
Liverpool then faced a race against time to negotiate personal terms, complete the player's medical and lodge the appropriate paperwork.
However, the deal came unstuck over Fulham's insistence the 19-year-old returned on loan to Craven Cottage for the remainder of the season.
While the Reds happily agreed to the request, the EFL does not allow 'deal sheets' which meant the loan part of the transfer wasn't concluded in time before the deadline.
It means Carvalho will spend the rest of the campaign at Fulham before becoming a free agent in the summer.
Liverpool, though, are now clear favourites to negotiate a pre-contract agreement with the teenager in the hope of signing him in any case at the end of the season.
Leeds have been linked with a move for Carvalho and the Whites were also interested in completing a deal in January, adding to Marcelo Bielsa's youthful squad.
Eighteen-year-old Mateo Joseph was the Whites' only signing in January, however, he has initially joined up with the under-23s squad and is expected to be one for the future.
There was some frustration from Leeds fans over the lack of business and it looks likely that they'll have to wait until the summer to add any more reinforcements, with Carvalho still a firm target.
But a player looking to move from one English team to another as a free agent can only open talks after entering the final month of their contract.
The Whites would also have to pay Fulham a compensation fee due to them having developed the player after he came through the club's academy.
There's no doubt Carvalho will have a number of potential suitors waiting for him in the summer, though, with Liverpool, Leeds and West Ham United supposedly leading the race.
This is due to his form for the Cottagers this season, having netted eight goals in 17 Championship appearances after scoring once in four matches in the Premier League last term.
Carvalho has also grabbed three assists and two goals in his three games and will be looking to help Fulham to promotion to the top-flight between now and the end of the campaign.
