The Sun says preliminary talks with Malouda's people have been positive enough to convince Kop boss Rafa Benitez the player will leave.

The French international almost joined the Reds last summer before Chelsea outbid them and offered £60,000 a week wages.

Benitez plans to move Ryan Babel to a more natural position on the right or behind Fernando Torres to free up the left attacking-midfield slot.

But the move is very much dependent on a takeover by DIC.