Hearts confirm deal to take Danny Wilson from Liverpool is off
Administration at Tynecastle means the club are no longer able to register the player.
Hearts have confirmed that their deal to sign Danny Wilson on a permanent contract has been cancelled.
The Tynecastle club had previously announced that Wilson has an agreement to join permanently when his Liverpool contract expired. He spent last season on loan at Hearts from the Premier League club.
The appointment of administrators at Hearts means the deal will not proceed, manager Gary Locke said on Friday.
A Scottish Premier League registration embargo imposed when the club appointed administrators BDO forbids the club from adding Wilson to their squad.
"Danny Wilson is still a Liverpool player and because we have an embargo we now cannot sign him which is very unfortunate for me," Locke said.
Wilson had agreed terms on a three-year deal in May and the 21-year-old had said that he was looking forward to developing under Locke. However, when news of the club's administration was confirmed, the player's status was called in to question.
Wilson will now be free to sign for another club when his Liverpool contract expires this month.