In what could be a setback for the striker's transfer aspirations, the Reds are allegedly ready to abandon the deal if they feel their rivals are inflating the 25-year-old's market value.
This comes on the heels of the club agreeing to sell Darwin Nunez.
With Nunez's departure, the Premier League champions are now in a position to propose a sum much closer to that asking price.
However, talkSPORT suggests that Liverpool will only secure Isak's services if the deal aligns with their criteria.
They will reportedly re-enter negotiations only if Newcastle facilitate a deal and if the price reflects what they deem 'fair market value'.
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Liverpool now have more funds after agreeing the sale of Darwin Nunez
Isak seems to be stuck in a difficult position if a deal cannot be agreed upon by all parties
Currently, he is training separately from Newcastle's first team and is not expected to participate in their pre-season matches against Espanyol and Atletico Madrid this weekend.
The Swedish international didn't accompany the club on their pre-season tour of Asia
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