The Sun says Cole will be dumped by Liverpool in the summer.
The former England playmaker, 29, has struggled to make an impact at Anfield since signing on a free from Chelsea last July.
Kop flop Cole has started just eight league games this season and now the Reds are ready to cut their losses on the £100,000-a-week star.
A Liverpool insider said: "It's tough on Joe because he is a great kid. But things just haven't worked out for him.
"And, unfortunately, that means Joe will be surplus to requirements."