The Mirror says Hodgson can expand his transfer kitty by selling Mascherano to Inter Milan.
Talks are due to get underway for the unsettled Argentine within the next few days, and if Liverpool can get around £30m for the international star, they will have enough to buy a replacement and a big name forward.
They have been linked with AC Milan striker Klaas Jan Huntelaar, with reports in Italy suggesting that a deal is moving closer for the Dutch international.
Hodgson will also bring in at least one left back, cover at right back and another left sided utility man, with Fulham defender Paul Konchesky and Villa's Luke Young likely to figure in deliberations.
Hodgson also wants to carry on the good work of recent months in signing exciting young talent, and he has looked at Stromsgodset's promising striker Marcus Pedersen.