The Yellow Canaries have been put off by his high asking price and recurring injury problems. Markovic has only been able to feature in a total of 20 games out of a possible 48.
The 22-year-old winger has made just 13 starts and has been out sidelined since 5 February. The latest injury is the third he has sustained this season.
Markovic is almost certain to return to Liverpool at the end of the season and was recently at the Reds training grounds in Melwood holding talks over his future.
The Serbian international could have a part to play at Liverpool next season according to head coach Jurgen Klopp.
“I will say at the start of pre-season, ‘Welcome, and then it’s up to you’,” Klopp was quoted as saying in the Express.
Klopp also stated that the current team is short on wingers and that a wide-player like Markovic could be a welcome addition over the summer.
“We are short on wingers. Everybody who is involved in pre-season can have a part to play,” he added.