Rafael Benitez was waiting on the forward to travel to Tyneside on Monday afternoon, but with West Brom entering the fray and offering Birmingham-born Sturridge the opportunity to return to the West Midlands, that plan was torpedoed.
The Magpies are desperate for firepower up front after scoring just 22 league goals in the Premier League this season, with boss Rafa Benitez identifying the out-of-favour Reds striker as a potential solution to his goalscoring problems.
Newcastle were hopeful of agreeing a deal for Sturridge after having a £15million bid for Feyenoord's Nicolai Jorgensen turned down last week.
However, as Sturridge's loan move to The Hawthorns was confirmed many Liverpool supporters bemoaned the club's decision to let both players leave the club without bringing in any attacking reinforcements to replace them.
He was also wanted by Newcastle, who were prepared to pay a £1.5m loan fee and cover his £120,000 a week wage packet for the duration of the stint.
Liverpool FC are now preparing for their trip to Huddersfield Town in the Premier League on Tuesday night.