Despite denials, Liverpool co-owner Tom Hicks will continue talks with Dubai International Capital, it has been revealed.

The Times says the Arab investment group is expected to become a co-owner of the Merseyside club next month by purchasing the 50 per cent stake held by George Gillett Jr in the first phase of a takeover process that will test the strength of Hicks's latest denials.

Despite yesterday's statement released by the American, numerous sources insist that his partnership with Gillett is finished and that DIC will start the first phase of its takeover within weeks.

Hicks's latest statement did not deny that discussions are taking place. DIC's interest never went away after it was gazumped by Hicks and Gillett a little more than 12 months ago and, although DIC turned down the Americans' invitation to buy a 15 per cent stake in the club after a meeting in October, discussions have taken place behind the scenes since the start of this year.

Hicks wants to remain senior partner in any coalition with DIC, which is proving a stumbling block in negotiations.