The English defender intends to be in a team that can play continuously next season.
The Reds rejected Sheffield United's offer last week and do not seem to agree with their buy option. Liverpool are reportedly planning to allow the 25-year-old defender to temporarily leave so he can play continuously next season.
Davies joined Liverpool in the winter transfer window from Preston and the Reds paid just € 600,000 for him. However, he did not play in any of Liverpool's matches and was replaced by Natt Phillips, Ozan Kabak and Rhys Williams. Despite his injury, he was on the Liverpool bench eight times but did not play a single minute.
In pre-season training in Austria, he played in a 30-minute mini-game against Stuttgart and Salzburg. However, he returned to the UK for personal reasons and will not be added to Liverpool's training camp in France this week. They will also play two friendlies against Athletic Bilbao and Osasuna at Anfield.
Sheffield will continue their efforts for this transfer and it remains to be seen what the task of transferring the English defender will be.