Harvey Elliott will leave Aston Villa in January, less than six months after joining the club.
The attacking midfielder joined Liverpool on a season-long loan on deadline day in September.
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His entry into Villa Park included a purchase obligation as well as resale and buyback clauses.
However, Elliott had struggled for playing time since joining Villa, who beat competition from Premier League and European clubs.
Unai Emery has now revealed that the club is looking for possible solutions for the 22-year-old ahead of next month’s transfer window.
This came after Elliott was not included in the traveling squad for Thursday’s Europa League game against Basel.
Elliott’s Villa Future
At his pre-match press conference, Emery said: “We are talking to him and about his situation.”
“He’s not here with us. Hopefully we can do the best for him and the best for us.”
“I respect him as a player and as a person. He trains well, but we have a circumstance with him.”
“Hopefully we can find a solution for him whether he can try to play consistently and continue his career with us or not.”
Elliott has only made five appearances for Villa since joining the club, scoring one goal in those games.
The most recent of these was a four-minute cameo against Feyenoord in the Europa League in October.
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Meanwhile, he was left out of the matchday squad in Villa’s last seven Premier League games.
Emery added: “I have spoken to him two or three times about the situation we have with him.”
“Firstly, my decision and also the situation. He’s on loan and playing for us, but he definitely won’t join us with a permanent contract.”
Liverpool have been dealt a blow
Liverpool were set to receive £35m as part of Elliott’s loan move to Villa once the deal was finalised.
However, the purchase obligation would only come into effect once the midfielder had made ten appearances for the club.
Therefore, the Reds are likely to miss out on a transfer fee this summer as the player will only reach half of that amount.
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Elliott would likely be forced to return to Anfield in January if he were to leave Villa.
The former England U21 international played twice for Liverpool this season before his move.
FIFA registration rules limit players to playing for a maximum of two clubs in the same season.
Elliott could get around the rules by joining a club in a league that runs from summer to winter, such as the MLS.