The Observer says the American owners encounter difficulties in refinancing £350million of debt incurred in taking over and running the club.

They have been attempting to transfer the debt, for which they are personally liable, on to the club itself. City sources believe this is an extremely difficult task to complete before the loan's due date at the end of February.

It is possible that the Americans will meet the deadline, but if not an Arab investment group, Dubai International Capital, is understood to be close to lodging an offer to buy out the American pair, probably for about £500m. Takeover discussions are thought to be due before the end of this month.

If successful, DIC, led by Liverpool supporter Sameer Al Ansari, would invest heavily in two areas: the new stadium that Liverpool need if they are to compete with Arsenal and Manchester United for matchday revenue, and an improved playing squad. Were they also to acquire a new management team Jose Mourinho, who is known to be interested in managing Liverpool, would be a prime candidate.