Birmingham City remain in the frame for Liverpool winger Ryan Babel.

The Guardian says Liverpool have received and rejected an offer from Birmingham that would allow them to recoup much of the £11.5m paid to Ajax for Babel in 2007, although the club's stance may be influenced by a desire to encourage an auction for the disillusioned 23-year-old.

Besiktas, Galatasaray and Juventus have all been linked with Babel, and several Spanish clubs are also interested.

Liverpool would prefer to sell Babel to a European club than risk him fulfilling his promise at a domestic rival, but Birmingham may withdraw their interest and pursue alternative targets should an auction develop.