Anfield club chase wide-man but will lose defender to San Siro giants.
Liverpool have set their sights on Real Sociedad winger Xabi Prieto but look set to lose out on Olympique Marseille defender Taye Taiwo.
The Sun reports manager Kenny Dalglish will offer the La Liga club £10million for their local star.
The Kop idol realises his team have little natural width and need a player to supply the crosses for another new signing Andy Carroll.
Prieto has demonstrated this ability for the last eight years in Spain scoring 33 goals. He has been likened to Manchester United’s Antonio Valencia.
But Liverpool are unlikely to land Marseille left-back Taiwo.
The Nigerian is out of contract in the summer but looks to be heading to Serie A leaders AC Milan.
The Anfield club were favourites to sign the 25-year-old but the lure of the Champions League proved too much for Taiwo to turn down.