The European champions have been continually linked with a move for the midfielder this summer with the player himself declaring his intent on leaving Anfield to manager Roy Hodgson.
But Moratti now admitted the club lack the financial resou...rces to match the English giants' hefty demands for the Argentinean.
"At this moment, we're unable to make any transfers of this magnitude," the Inter chief said in an interview with Corriere dello Sport.
"We can't make any big transfers until we've sold someone."
Meanwhile, defender Maicon's proposed move to Real Madrid looks dead and buried after Moratti confirmed the defender is going nowhere.
However, striker Mario Balotelli is poised to sign for Manchester City later this week despite the pro-longed negotiation.
It remains to be seen if Inter would reignite their pursuit of Mascherano with the cash from Balotelli.
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