Liverpool faces competition from a host of clubs in the race to sign Sergio Canales.
Reports in Italy claim the player is edging towards a move to Roma, whilst Goal.com reported only yesterday that Valencia were set to launch a bid for the player.
Last week, QPR boss Neil Warnock was linked with a loan move for the player, but the former Blades boss isn't the only manager keen to bring the player to England.
Liverpool have long been linked with a move for the player, with reports in Spanish daily AS back in March claiming Kenny Dalglish was tracking the player.
TalkSPORT have since claimed that the Merseysiders were interested in bringing the player to Anfield on a loan deal, although the link between Liverpool and the Real Madrid player has been relatively quiet since the end of season.
The Reds have already invested heavily in the midfield area this summer, with Jordan Henderson making a £20 million move and Charlie Adam joining the youngster at Liverpool after an £8.5 million switch to Liverpool last week.
Working alongside Liverpool director of football Damien Comolli, Dalglish is also thought to be chasing a left back, winger and striker ahead of the new campaign, which kicks off in a month against Sunderland.
On the pitch, the side made a solid start to their pre-season tour of Asia, and the Scottish boss will now know a bit more about where he needs to reinforce the Liverpool side after a 4-3 win against Guangdong Sunray Cave.
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