Jurgen Klopp signed AS Monaco holding midfielder Fabinho and RB Leipzig playmaker Naby Keita in the 2018 summer transfer window.
However, the Reds were unable to get a deal over the line for the France international following negotiations with Lyon.
Fekir was reported to have travelled to Liverpool FC to undergo a medical and select a shirt number.
However, the Reds attempted to renegotiate a deal with Lyon due to concerns over a knee problem despite already having already agreed a fee.
Liverpool FC were 1-0 winners against Everton in the Merseyside derby at Anfield thanks to Divock Origi’s last-gasp winner.
Klopp’s side have struggled to play fluid football in the current campaign, while Fabinho and Keita have been unable to hold down a regular starting spot.
Jordan Henderson, James Milner and Georginio Wiljnaldum have started in the Liverpool FC midfield throughout most of the campaign.
Former Liverpool FC manager Souness believes Klopp’s midfield is holding back the Reds team.
“It’s very hard to be critical of Liverpool’s form in the Premier League, but they’re not firing on all cylinders,” Souness told Sky Sports.
“I think a lot of the problems come from midfield. I think if you go back to the summer, he [Jurgen Klopp] signed two midfield players and wanted a third one – Nabil Fekir from Lyon – and I’m not sure if Fabinho and Naby Keita are an upgrade on what he’s already got.
“Last year, the midfield of James Milner, Georginio Wijnaldum and Jordan Henderson were winning it early and getting forward early and the three strikers were off raiding and causing havoc. Now, it is a little bit more pedestrian, they’re winning it but there’s an extra touch or pass.
“I think they’ve got to get back to that front three as quick as they possibly can and if they can do that, then they’ll be firing on all cylinders. But right now, for me, they’re not where they were last year.”
Liverpool FC managed to remain within two points of Premier League leaders Manchester City thanks to their 1-0 win against Everton.
The Reds will make the trip to Burnley in their next Premier League fixture at Turf Moor on Wednesday night.
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