The Mirror says Liverpool have been forced to accept they should sell Mascherano now because of his consistent refusal to commit his future to the club.
And Inter have begun moves to sign the midfielder after his agent Walter Tamer claimed it would be a "dream" for him to be reunited with Rafa Benitez.
Tamer is believed to have been to Milan to open talks with Inter, although the Champions League holders have yet to have any formal discussions with Liverpool, and sources even claimed Mascherano has been there too, despite not having permission to talk to the club.
The fee will be the only sticking point and Liverpool will want close to £30million for Argentina's World Cup skipper.
Inter are reluctant to fork out this much and will offer less than £20million for Mascherano, who is due back at Melwood to start training next week, believe they will hold the upper hand in the negotiations because the former West Ham man is in the final two years of his Anfield contract.