The Reds had been linked to the Chile international as part of Barcelona's bid for Luis Suarez.
According to the Liverpool Echo, the Anfield side have admitted defeat following reports that Arsenal have made a £32m bid for the 25-year-old.
The report also claims that Sanchez's representatives have told the club that he is likely to join Arsene Wenger's side.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Liverpool | 20 | 14 | 5 | 1 | 48 | 20 | 28 | 47 |
| 2 | Nottingham ForestNott'm Forest | 21 | 12 | 5 | 4 | 30 | 20 | 10 | 41 |
| 3 | Arsenal | 20 | 11 | 7 | 2 | 39 | 18 | 21 | 40 |
| 4 | Chelsea | 21 | 10 | 7 | 4 | 41 | 26 | 15 | 37 |
| 5 | Newcastle UnitedNewcastle | 20 | 10 | 5 | 5 | 34 | 22 | 12 | 35 |
| 6 | Manchester CityMan City | 21 | 10 | 5 | 6 | 38 | 29 | 9 | 35 |
| 7 | Aston Villa | 21 | 10 | 5 | 6 | 31 | 32 | -1 | 35 |
| 8 | Bournemouth | 21 | 9 | 7 | 5 | 32 | 25 | 7 | 34 |
| 9 | Fulham | 21 | 7 | 9 | 5 | 32 | 30 | 2 | 30 |
| 10 | Brentford | 21 | 8 | 4 | 9 | 40 | 37 | 3 | 28 |
| 11 | Brighton & Hove AlbionBrighton | 20 | 6 | 10 | 4 | 30 | 29 | 1 | 28 |
| 12 | West Ham UnitedWest Ham | 21 | 7 | 5 | 9 | 27 | 41 | -14 | 26 |
| 13 | Tottenham HotspurSpurs | 20 | 7 | 3 | 10 | 42 | 30 | 12 | 24 |
| 14 | Crystal Palace | 21 | 5 | 9 | 7 | 23 | 28 | -5 | 24 |
| 15 | Manchester UnitedMan Utd | 20 | 6 | 5 | 9 | 23 | 28 | -5 | 23 |
| 16 | Everton | 20 | 3 | 8 | 9 | 15 | 26 | -11 | 17 |
| 17 | Wolverhampton WanderersWolves | 20 | 4 | 4 | 12 | 31 | 45 | -14 | 16 |
| 18 | Ipswich TownIpswich | 20 | 3 | 7 | 10 | 20 | 35 | -15 | 16 |
| 19 | Leicester CityLeicester | 21 | 3 | 5 | 13 | 23 | 46 | -23 | 14 |
| 20 | Southampton | 20 | 1 | 3 | 16 | 12 | 44 | -32 | 6 |
| > Premier League Full Table | |||||||||
