Duncan Castles has been speaking on the latest edition of The Transfer Window podcast about Liverpool and their potential transfer business.
Liverpool have since signed Diogo Jota now from Wolverhampton Wanderers, but speaking before the official announcement, Castles suggested that the Reds were still keen on Sarr.
It seems as if a permanent deal for Sarr is a long way away as Liverpool and Watford are not close on agreeing over the valuation on the 22-year-old, with Castles revealing that the Reds were looking to pay just €40m (£36.71m) for a player who Watford spent €35m (£32.12m) on last summer.
He said: “My information is the fee that Liverpool are offering is €40m.
“The Pozzo family are saying ‘look, this is our top talent, we paid €35m for him last summer – €40m, not a chance we let you have him for essentially just €5m [more], which is essentially no profit at all.’
“I am told [they’re] a long way apart on valuation, and that’s why they are now discussing this loan fee.
“The loan fee, I am told, will be about £8-10m per season, so substantial money there.
“It’s complex, but Liverpool have shown their hand, and it makes sense for them to bring a player in who can deputise for their three lead strikers.”
Do you think Liverpool will sign Sarr now?
No, we don't need him
Yes, would be a great signing
Since this podcast was released, the Reds have signed Diogo Jota from Wolves for a potential £45m, and it is unclear if this means their interest in Sarr will now end.
With Watford and Liverpool struggling to agree on a fee, it could be that the Reds decided that a move for Jota was a better alternative, and that was why they went with the Portuguese international instead of the Watford winger.
Either way, considering that Castles also suggested that Watford ‘have to raise money’ this summer, it might not be a surprise to see the Reds go back in for Sarr if Watford cannot sell the players they want to get rid of.
Therefore, this could still be one to keep an eye on as the transfer window approaches its conclusion.