Barcelona have also seen their £82m-plus-add-ons offer turned down for Dortmund's Dembele, according to Sky in Germany, and Sky Sports' Spanish football expert Balague believes the Spanish club will have to choose between their two targets.
Souness feels the attacking midfielder is likely to leave Anfield, but can not see Jurgen Klopp's side challenging for one of this season's biggest two trophies even if they keep the 25-year-old.
Liverpool are adamant that Philippe Coutinho will not be sold this summer, releasing a statement that confirms their intention to resist any offers for the Brazilian. In the words of the Celtic boss, "Philippe Coutinho is a world-class player but the power in the position is with Liverpool". "That is set in stone".
Speaking on Wednesday as the club announced Western Union as their shirt sleeve sponsor, Klopp told reporters that "everybody was really happy" that they finished in the top four last season.
While there is a belief that Daniel Levy has a selling price for every player, Barca may have to go beyond £100m, given that Spurs sold Kyle Walker for over £50m. No price at which we are ready to give in.
"They already had an incredible team last season and then Jesus joined them and I thought, "Oh my goodness".
Gray's signing could have cast further doubt over Deeney's future but, asked if he would stay, Silva said: "Of course, he's our player and our captain and he's one player we hope to keep".
The statement said: 'Philippe has tried very hard to find an amicable solution to this situation but to no avail. But a transfer is also a question of timing and if you have the opportunity and the need to react to such a transfer. The Premier League season kicks off this weekend, and having signed no one for the first team all summer long, his departure would be an enormous setback for the club.