The 25-year-old has not played a single game for the Reds since joining from Preston in February, but is now likely to return to the Championship
Sheffield United are hoping to sign Liverpool defender Ben Davies on loan, Goal can confirm.
The Reds rejected an initial approach from the Championship side this week, as they were unwilling to agree to a buy option in the deal.
But it understood that they are willing to allow the 25-year-old to leave on a temporary basis this summer, with the player eager to play regular football this season.