Liverpool's hopes of signing Nottingham Forest defender Murillo have been dealt a blow, with the Brazilian set to sign a contract extension at the City Ground.

The 22-year-old has been a revelation since he joined Forest from Corinthians for $12million/£10million in August 2023. He was named the club's Player of the Year in his debut season and has taken his performances to the next level this season.

Forest has mounted an unlikely push for the Champions League under Nuno Espirito Santo, conceding just 22 goals so far. And Murillo has been instrumental in that defensive record alongside summer recruit Nikola Milenkovic.

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He caught the eye against Liverpool last week too and the Reds are known to be admirers of the defender, alongside other clubs. But the Daily Mail reports that Forest has acted quickly to tie him down to a new contract.

It is claimed that the deal will see Murillo earn a bumper pay rise, having signed a five-year deal when he moved to the Premier League just 18 months ago.

Liverpool is likely to step up its search for a left-sided defender in the summer despite the expectancy that Virgil van Dijk will sign a new contract. Throughout his Liverpool career, the Dutchman has been played on the left of the central defensive pairing.

Van Dijk's performances have gone up a notch again this season but he will be 34 in the summer and Liverpool must have a contingency plan in place. Murillo seemed like the ideal long-term replacement but he would now command a huge fee for Forest to even consider doing business.

Kop legend Jamie Carragher has been vocal of Liverpool's need to add a left-sided defender amid uncertainty over Van Dijk's future and Andy Robertson's dip in form.

“Liverpool hasn’t got a player that every other club has: a left-sided defender who can play centre-back or left-back,” he explained on the Stick to Football podcast.

“So Arsenal has got Calafiori, United has got Martinez, Chelsea has got Colwill, City has got Nathan Ake and Gvardiol, even Tottenham has Van de Ven who could do a little bit of left-back.

“Liverpool needs a left-sided defender, who can sort of do a little bit of both; stature, presence and just a bit more power. I think if Liverpool signs that player in January – I haven’t got any names, nothing’s been linked, but it’s crying out for that – I’d be almost certain that it would win the league.”