The Reds had a £111million bid for the midfielder accepted on Thursday night.
Caicedo was due in the north-west on Friday to complete a medical with Liverpool.
However, the Ecuador international was having second thoughts over a move to Liverpool this morning.
Fabrizio Romano says the 21-year-old has now informed Liverpool that he only wants to join Chelsea.
It means the saga has taken another astonishing twist, with the ball back in Chelsea’s court.
As far as Brighton are concerned, little has changed as they accepted the largest bid.
Chelsea will now have to match Liverpool’s bid to get the deal done.
The Blues are offering Caicedo higher wages and more seniority than is on offer at Anfield.
Jurgen Klopp confirmed in his Friday press conference that Liverpool had a bid accepted by Brighton.
But the German suggested the ball was still in Caicedo’s court.
‘I got told I can confirm the Moisés Caicedo deal is agreed with the club,’ said Klopp.
‘With the player, we will have to see. Medical today? I can’t tell you, I don’t know.
‘We give it a go and the club have really stretched it to be honest’.
