The Spain international was earmarked to replace Victor Valdes, who was heavily linked with a Camp Nou exit after confirming he will not extend his contract with the Spanish champions.
Monaco seemed best-placed to sign Valdes, but the goalkeeper committed to remain with Barca for the final season of his deal.
This also saw Reina's move to Catalunya fall through, as Liverpool sought to sell the 31-year-old following Simon Mignolet's £9million arrival from Sunderland.
"A few months ago Pepe was in talks with Barcelona," Reina's father Miguel told Marca.
"They had an agreement and he was all set to go but then Victor Valdes didn't leave and the deal fell through."
With Valdes set to leave at the end of the season, Reina reportedly remains a target for Gerardo Martino, with Borussia Monchengladbach's Marc-Andre ter Stegen and Celtic keeper Fraser Forster also noted as possible replacements.
