Blackburn Rovers boss Sam Allardyce is ready to fund a deal for Guti by selling Aussie midfielder Vince Grella.
Jose Mourinho effectively ended the Real Madrid career of Guti yesterday - a day after his agent, Zoran Vekic, said a move to Rovers was still on.
The Telegraph says having attracted Ivan Campo and Fernando Hierro to former club Bolton from Real, Allardyce is determined to pursue Guti after being given encouragement that the player would be open to a move to Blackburn.
Although Guti would command up to £70,000 per week in wages, Allardyce could help fund the move by sanctioning the £2 million sale of Australia midfielder Grella to Galatasaray.