Liverpool have been dealt a January transfer blow as one reported target makes a big decision on their future.

Reports in recent months have linked the Reds with a swoop for Nottingham Forest defender Murillo. The 22-year-old centre-back has been in fine form this season, helping Forest climb up to third in the Premier League standings, as the Midlands side continue to defy odds and expectations.

Murillo played a major role in stopping Liverpool from claiming a win against Forest at the City Ground last week, with the Reds forced to settle for a point in a 1-1 draw. The defender has helped the East Midlands club keep eight of their nine clean sheets this term, with that form seeing the defender linked elsewhere.

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Amid apparent interest from Liverpool in Murillo, an update has emerged on the defender's future. According to The Daily Mail, the centre-back has signed a new long-term contract to commit his future to Forest.

That report claims that Murillo's new four-year deal will run until the summer of 2029. It has also been suggested that Forest have significantly increased the defender's salary with the agreement.

It was, in August 2023, that Forest first signed Murillo from Brazilian club Corinthians in a deal reportedly worth around £15million after agreeing a five-year deal. A year later and the defender was being linked with a move to Liverpool - and Murillo himself even acknowledged that he could move to a "big club" in the future.

"I had the dream of playing in the Premier League and I had that thought," said Murillo featuring on the Benja Me Mucho podcast last year. "I thought; 'I'll go to Nottingham Forest, have a good year and then I'll go to a big club'. I had that in my head.

"I would choose Manchester City, but it would be more difficult for me to be a regular starter, given the players they have in their squad. There's City, Arsenal as well, who are fighting for the Premier League title.

"I wouldn't discard Liverpool, either. It would be a good opportunity for me to show my football in a big club."