Fiorentina director Pantaleo Corvino has confirmed their bid to sign Liverpool defender Emiliano Insua has collapsed.
Liverpool earlier said that a deal to sell Insua, 21, had been agreed, but Fiorentina had revealed the move was in jeopardy due to the player's wage demands.
"We're giving up on Emiliano Insua," Corvino told Sky Sport Italia. "He asked for wages we cannot possibly provide.
"Last night I had dinner with the director of sport at Liverpool until 2am. The player will remain in England. He is owed money by the club and he asked for wages we cannot possibly provide.
"Therefore we're giving up on Insua. He will not be coming to Fiorentina. Because of this, the squad at Sinisa Mihajlovic's disposal will remain what it is now, unless there is a shock bargain available."
Liverpool have already moved to provide cover at left back by re-signing Fabio Aurelio following his release earlier in the summer.