Former England manager Fabio Capello has reportedly rejected the chance to speak to Liverpool over the vacant managerial position in order to keep the door open for Chelsea.
The Italian coach has been linked with both jobs in recent months following his decision to step down from the Three Lions in February.
It is believed that the former Real Madrid coach is eager to sign a one-year deal with the Blues as he would prefer to live in London for his next managerial challenge, according to the Daily Mail.
Meanwhile, the Reds held talks with Wigan Athletic boss Roberto Martinez yesterday, while Chelsea continue to deliberate on whether to appoint Roberto Di Matteo as the club's permanent boss.