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Liverpool transfers: Reds to follow up James Milner deal with £18m wonderkid

Liverpool are being tipped to make their second signing of the summer imminently as they work on a deal for highly-rated Inter Milan midfielder Mateo Kovacic.

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The Croatian international playmaker has caught the eye in Serie A in recent times, and could make the ideal replacement for Steven Gerrard in the middle of the park next season.

Still only 21, Kovacic looks like one of the best prospects in Europe at the moment, and the Metro claims Liverpool have already agreed personal terms with him over a proposed move to Anfield in the summer.

This will come as a big boost for Reds fans as they look to face a difficult transfer window after losing Gerrard, with star player Raheem Sterling also likely to seek an exit from the club.

Kovacic would go some way to improving this team for next season, though a fee is yet to be ironed out, with Inter holding out for around £18m for the youngster, while Liverpool have only offered £15.2m.

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