Blow for the Black Cats.
Liverpool striker Fabio Borini has turned down a permanent transfer to Sunderland, according to Gianluca Di Marzio.
Borini spent last season on loan at Sunderland and the Black Cats had agreed a £14m fee with the Reds.
However, the 23-year-old has apparently decided against a return to Wearside because he is holding out for a better move.
Inter Milan and Juventus have been touted as potential destinations that may appeal more to Borini.
Borini has two years left to run on his current contract at Anfield.
He cost the Reds £10.5m when he signed from Roma in July 2012.
In 20 first-team games for Liverpool, Borini has scored just twice, but only half of his appearances came as starts.
He netted 10 times in 40 matches for Sunderland, bagging four in his last five Premier League outings.
Should Borini remain at Liverpool this season, he could get plenty of game time, with the Reds anticipating their busiest season in a few years, having secured a return to the Champions League.
Liverpool netted 101 Premier League goals last season, but they have lost their leading scorer.
Luis Suarez, who was responsible for 31 of their league strikes, has moved to Barcelona for a fee in the region of £75m.
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