Talks had been held between Smith’s promoter and three-weight world title holder Mosley earlier this week, although broke down on Wednesday due to a rematch clause stipulation that was unworkable to the challenger.
Gallagher revealed to WBN that in his mind 44 year-old Mosley was never in the frame to face Smith in December anyway – but says the grudge fight would be massive if staged on Merseyside in the summer of 2016 instead.
“As far as I know it won’t be Shane Mosley in December,” Gallagher exclusively told World Boxing News.
“That’s a fight that needs to be top of the bill itself, maybe at the Echo Arena in Liverpool. It’s not an undercard fight on Andy Lee v Billy Joe Saunders.
“It’s a fight for Liam Smith to face a great in Shane Mosley and it needs to be built up. If Liam wins in December and Shane wins his next fight, as I don’t even think he’s ranked, then we could have it either at the Echo Arena or Anfield (football stadium) in Liverpool next year.
“Liam needs to be topping the bill against someone like Shane Mosley. I think it’s too big a fight for December 19 and it needs to go where Liam takes centre stage.
“They have never had a boxing fight at Anfield and I think it would be fantastic for Liam Smith to fight a former great like Shane Mosley there. It would be a great occasion for the city of Liverpool and for Liam Smith,” he added.
As it stands now, Smith is likely to take his pick from the Top 15 WBO rankings, whilst Mosley will plough on with his scheduled fight in early 2016 unless things dramatically change in the coming days.