Benfica forward Oscar Cardozo is set to pen a deal keeping him the club until at least 2016.
The Paraguayan's current deal will keep him at the club until 2014, how an offer of a two-year extension is expected to warn off interest in the striker.
Liverpool had reportedly been interested in the 28-year-old, however the player's agent Pedro Aldave says he is currently negotiating the extension.
"The kid is happy in Benfica and it will be normal to stay there, but it is necessary to settle more details," Aldave said.
The fee demanded for the player is reported to be in the region of €60 million, however given that Liverpool have spent over £100 million since the appointment of Kenny Dalglish, the club could be tempted to make a move.
However, the signing of Craig Bellamy on deadline day in the transfer window negates their need for the striker, but if Luis Suarez's reported transfer to Real Madrid ever came to fruition, then Liverpool may be forced into a move.
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