The Reds are determined to sign Barry and upped their offer to £15m on Wednesday but Villa are holding out for around £18m.
The England midfielder has expressed his desire to move to Anfield but Martin O'Neill isn't willing to be forced into selling his prize asset.
Rafa Benitez clearly believes he can get Barry for under the asking price but may now have to wait and see if he can acquire the funds for a renewed offer.
The cash he is looking for could come from selling Xabi Alonso to Juventus, but there is no sign of any bid from the Turin giants.
Meanwhile, Villa have a wantaway midfielder on their hands and that problem doesn't appear to have an imminent solution.