Per Sami Mokbel of the Daily Mail:
Anfield manager Brendan Rodgers was keen on a season-long loan deal but the player pulled out of the deal, insisting any move had to be permanent.
Liverpool, who would give Sturridge a chance to play as a striker, remain keen but his £15m asking price is likely to be a stumbling block.
While it's important for Liverpool not to overpay to bring the Englishman to Anfield, Sturridge is a young player with enormous talent who could finally reach his potential in Rodgers' system.
Paying £15 million for Sturridge would not be good business for Liverpool, but if the Merseyside club can get him for under £10 million, then the deal should be made.
Is Liverpool the best club for Sturridge?
With summer signing Fabio Borini dealing with an injury right now, plus the fact that he's still adjusting to Premier League football, acquiring Sturridge would be a smart move for the Reds.
He can excel as a striker or a winger, so he would definitely add some versatility to the Liverpool squad. Rodgers' team has scored just nine league goals this year, which ranks 11th in the league.
Arsenal would be a good place for Sturridge if he wants Champions League football, but the abundance of attacking players at the Emirates would make it difficult for the Chelsea man to see the pitch more than he is now, especially with young winger Theo Walcott wanting to play more centrally.
Liverpool is clearly the ideal club for Sturridge at this stage of his career, and Rodgers should make a bid for the Chelsea striker when the transfer window opens again.