Atletico Madrid have announced they have come to an agreement with Liverpool that will see Javier Manquillo cancel his loan spell with the Premier League side and return to Spain 12 months earlier than planned.
The Guardian reported this week that Reds boss Brendan Rodgers was eager to cancel the two-year agreement with the La Liga side in order to make room in his squad for more arrivals this summer.
Manquillo, 21, featured regularly for the Merseyside club in the first half of the 2014-15 season where he made 15 appearances, but would make just a further three following the turn of the year.
Liverpool also had the option to make their deal for the right back a permanent one in the summer of 2016 but instead the Spain Under-21 international has been recalled by Atletico and is expected to join another club on loan in the coming weeks.
"Javier Manquillo will not fulfil his second season on loan with Liverpool. The player and Atletico de Madrid decided he would go to Anfield's club for two seasons to enjoy the necessary minutes to continue growing football-wise," a statement from the Spanish side read.
"However, in this first season with the 'Reds', the defender has not had all the minutes he and our club consider necessary for that purpose of accumulating experiences in his sports growth, so by mutual consent, it has been decided that he will not follow under the discipline of the English team."
The arrival of Nathaniel Clyne, 24, from Southampton is likely to have prompted Liverpool's decision not to fight Atletico on the return of their player to the Spanish capital. Clyne is expected to be the club's first choice at right back and right wing back following the departure of 30-year-old Glen Johnson, and with Emre Can, 21, expected to return to a midfield role next season.
Manquillo's chances last season began to dry up in December 2014 when Rodgers changed his formation to a 3-5-2, deploying Germany Under-21 international Can at right wing back.