The USA international broke into the Dortmund team last season and quickly became one of the best talents in Europe.
Last month, Dortmund sporting director Michael Zorc, told Liverpool not to bother trying to sign Pulisic.
“We have made it quite clear that we are not going to sell Christian and that we are planning with him,” Zorc told Germany's Bild newspaper.
— Borussia Dortmund (@BVB) January 23, 2017
“Liverpool can save the effort of making an offer.”
Reds boss Jurgen Klopp is known to be an admirer of the 18-year-old but may now be forced to look elsewhere to strengthen his squad after revealing his frustrations with the transfer window.
“I understand it is absolutely normal, people ask whether we should have brought players in,” Klopp said.
“The situation is yes, on the one side pretty simple, but on the other hand it is pretty difficult.
Christian Pulisic has extended his contract
Christian Pulisic is the USA's top talent
“It is not that we don’t want to bring players in. We do. But the thing is, the players we want because we think they help us, the clubs don’t sell. It is not about money in this situation, it is the winter transfer market.
“Clubs are saying ‘no we have half a year to go, we can not find another player like this, we prefer to take money in the summer, than a few pound more in the winter than whatever’. So it is pretty easy.
“You see the situation, it’s tight, it’s close, we know that, but if the right decision is not possible in signing the right player, then you cannot make the wrong transfer.
“It is not as if there are 20 players out there who could make this team stronger, who are running around and are available. That is the situation.”