The former Academy defender moved to Anfield in 2018 and made his debut against Aston Villa last year.
However, with fellow countryman Andy Robertson ahead of him in the pecking order the 22-year-old has been unable to stake a regular claim for a place under Jurgen Klopp and Gallacher spent time on loan at Toronto FC last year.
Earlier this week he was close to a free transfer switch to Sunderland – a move which would have denied Falkirk a sell-on fee inserted in his deal – but reports in the north-east now say that deal is dead. Our sister title The Sunderland Echo reports Gallacher was one of “10 or 12” targets for the Black Cats but they will now assess other options.
Falkirk sold Gallacher, who had been with the club since he was 10 years old, in January 2018 for £200,000 after the youngster broke through into Peter Houston’s team and became a regular under Paul Hartley. He earned the Bairns a payday with a debut for Liverpool’s first team in a controversial League Cup quarter-final tie against Aston Villa when the Reds had to play a youth side with the first-team in Qatar for the World Club Cup.
A future transfer would also benefit the Bairns via one of the cinch League One club’s clauses in the transfer deal – but only if he moved for a fee, not a free transfer.
Gallacher had been tracked by several top-level clubs – and also had Barcelona monitoring his progress – before moving to Melwood.