St Andrew’s star leaves on a free and heads to St James’ Park or Anfield.
Birmingham City winger Sebastian Larsson has left the club on a free and is now the target of Newcastle United and Liverpool.
The 25-year-old’s contract has expired at St Andrew’s and he is free to talk to other clubs over a move.
The Sweden international held unsuccessful talks with manager Alex McLeish but no deal could be agreed.
Larsson came close to signing for Newcastle in January after handing in a transfer request but Birmingham decided to keep the wide-man until the end of the season.
Toon boss Alan Pardew is still keen on the former Arsenal star and would love to bring him to St James’.
But Liverpool have now entered the race for Larsson as Reds’ manager Kenny Dalglish is desperate to sign a winger and has grown frustrated in his efforts thus far.
Other clubs including Sunderland and Stoke City are said to be monitoring the situation.
Larsson’s exit signals an exodus from the Birmingham playing staff. Alexander Hleb, David Bentley, Obafemi Martins and Matt Derbyshire have already left following their loan deals expiring.