Manchester City refused an offer from Liverpool that would have seen unsettled Argentinian forward Carlos Tevez move to Anfield in a straight swap for misfiring Reds striker Andy Carroll, reports said Sunday.
According to two newspaper reports Liverpool were prepared to suffer a loss of around £10 million on Carroll if City agreed the swap deal.
Carroll cost Liverpool a club record £35 million when he moved to Anfield from Newcastle last season, in the process becoming the eighth most expensive footballer in history.
But while prolific with the Magpies, Carroll has scored only six goals in 36 appearances and failed to secure a regular starting spot in Kenny Dalglish's side.
The career of Tevez has been in limbo since a touchline bust-up with manager Roberto Mancini during the Champions League defeat to Bayern Munich in September, when he refused to come on as a substitute.
The Argentinian, who was hit with a £1.2 million fine by City in December for going to Argentina without permission, has been trying to seal a transfer in recent weeks but touted moves to AC Milan, Inter Milan and Paris St Germain have all come to nothing.
According to The Observer, Liverpool contacted City on Thursday to "ask how much they wanted for Tevez and whether they would be willing to contemplate a straight exchange with Carroll".
The report said Brian Marwood, the City football administrator, "rebuffed the idea immediately, even though Carroll is a player Roberto Mancini has admitted admiring when he was at Newcastle".
In a similar report, The Sunday Times said the "astounding swap deal was rejected immediately by City as the Premier League leaders stuck to their position of only considering letting Tevez go for a transfer fee - with £25.2 million their asking price".
Tevez is said to be planning a return to Manchester this week. The winter transfer deadline is on Tuesday and, if true, it would indicate the Argentinian may want to re-establish himself in the team.
Carroll, meanwhile, had a hand in both of Liverpool's goals Saturday as the Reds beat Manchester United 2-1 to send them crashing out of the FA Cup.
But reports of Liverpool's efforts to offload him have raised serious questions about his future at the club.