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Liverpool's attempts to sign Ajax striker Luis Suarez has suffered a major setback after negotiations between the clubs broke down in Amsterdam, according to Amsterdam-based newspaper Het Parool.

The Reds' director of football Damien Comolli has returned from the Dutch capital after trying to secure a deal to bring the Uruguayan striker to Anfield but Liverpool are said to be unwilling to meet Ajax's reported £30 million asking price for their prized asset.

The 24-year-old is said to favour a move to England but with two-and-a-half years remaining on his contract, may still remain at Ajax unless the Anfield outfit meet his club's valuation in the next week.

The Uruguayan is thought to be at the top of Comolli's shopping list this January, with the club desperate to provide some support to a resurgent Fernando Torres, after impressing in the Eredivisie, scoring 81 goals in 108 games for the Dutch giants.

Meanwhile, former Ajax star Ryan Babel is staying at Liverpool, Reds boss Kenny Dalglish has confirmed, despite being widely expected to join German side Hoffenheim this January transfer window.

Babel, who was also stated as a possible makeweight as part of the Merseyside club's attempts to sign Suarez, now looks set to be staying put, with Dalglish bluntly telling reporters "he's staying here" when asked whether their attempts to sign the Uruguayan may be affected as a result.

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