The agent of the highly-rated youngster has revealed that the Anfield club have decided to turn their attentions elsewhere after looking as though they were front runners to secure his services.
Jose Mourinho could now be in prime position to convince the 18-year-old to put pen to paper and head to Stamford Bridge as he continues to try and bolster his squad.
The player's agent, David Venditelli, confirmed that the Blues are one of his client's preferred options but Atletico Madrid, Bayer Leverkusen and Bayern Munich are also considering a move.
The west London outfit are looking to add fresh faces to the squad and have already drafted in Andre Shurrle from Bayer Leverkusen this summer.
Venditelli confirmed: "Kurt and Liverpool are finished."
Chelsea last week