According to reports, the Premier League outfit did not transfer the necessary funds in time for the deal to go ahead, something that Rodgers is quick to deny.
The Reds manager told London Evening Standard: "I've heard the problem mentioned was about the money but that was not a problem. It just wasn't to be.
"The club did everything possible to get the player in. I feel really sorry for the player because he was obviously desperate to come, but it's gone now and we will review it in the summer."
Liverpool host Arsenal in their next league match on Saturday.