And The Sun newspaper reports that Reds boss Rafa Benitez is willing to offer Argentine Sebastian Leto as part of the deal.

The winger, who spent time on loan at Manchester City two years ago, will cost around £6m.

Meanwhile, Steven Gerrard has called for Liverpool's owners to act immediately and give manager Rafael Benitez the funds needed to become realistic Barclays Premier League contenders next season.

The Reds skipper believes the Anfield club suffer from a failure to invest in the summer which allows Manchester United and Chelsea to make a head start in the race for the title.

The 27-year-old insists the team have faith in Benitez, who had to contend with off-field conflict last season, but wants co-owners George Gillett and Tom Hicks to give the Spaniard the means to ensure the Reds are in the title race from the start.

Gerrard told the News of the World: "It hurts more and more when we get to November or December every season and have to accept we're out of the title race again.

"Every year seems to be following the same routine.

"The manager asks for more support in the transfer market in January, while we're all saying to ourselves this should have happened the previous summer.

"The time to act is now, not in January when we're already too far behind.

"The manager knows where we need to strengthen and the players and fans have faith in Rafa - but he needs the backing to act on his plans.

"When the American owners came to Liverpool they told the players and fans they wanted the same as us.

"We all believed them when they made that promise and it's been repeated again since, so we're all desperate to see it happen.''

The England midfielder admits he is desperate to win a league title, saying: "I've won every major honour at Liverpool except one. It hurts more and more not only to have never won the league, but to have never really gone close.

"It would be bad enough if we only narrowly missed out on the title, but we've never got to March or April recently and thought we were in contention.

"That's what we want more than anything at Anfield, but we'll only achieve that when everyone is working together for the same goal.''