Kenny Dalglish has held talks with former Real Madrid manager Manuel Pellegrini over the past few days, but MirrorFootball can reveal the Anfield club are still confident of landing Roy Hodgson.
The Fulham boss refused to be drawn on the subject when he appeared as a pundit on BBC1's coverage of Mexico's 2-0 World Cup victory over France.
When asked about his future, Hodgson said: I'm Fulham manager. I'm perfectly happy at Fulham. To be honest there's a lot of speculation but I can't enlighten you."
However, MirrorFootball understands that Liverpool insiders hope Hodgson can be appointed at Anfield as early as Thursday or Friday of next week.
Manuel Pellegrini's agent denied his client had met with Dalglish at Heathrow airport, but the 56 year-old was in England yesterday and is believed not just to have linked up with Liverpool's king-maker, but also to have expressed an interest in the job.
The Chilean was replaced by Jose Mourinho at Real Madrid last month after failing to secure major domestic or Euorpean honours in his first - and only - season in charge at the Bernabeu.