Liverpool remain confident of winning the race for Inter Milan midfielder Philippe Coutinho.

The Telegraph says Mauricio Pochettino, the new Southampton manager, worked with Coutinho at Espanyol last season and his club have agreed to meet Inter's asking price for the 20-year-old.

But it is believed Coutinho is not interested in a move to St Mary's and Liverpool hope to agree a deal before the weekend.

Liverpool's initial £6 million bid was rejected late last week but they have restructured their latest offer and agreed to pay an extra £2 million up front. Inter have been beset by financial problems and could find the promise of £8 million difficult to turn down.