Liverpool's UK scout Mike McGlynn admits it's a tough task identifying local talent capable of playing in the Champions League.

He told liverpoolfc.tv: "There were a couple last year who we watched all through the season. It is that constant. You're monitoring someone over a period of games and then there comes a time when you stick your head out and say, 'Would you sign this player?' The biggest difference I have found at Liverpool is that you are now dealing with the top four.

"You've got to look at players who can play Champions League. There are a lot of good players but there's a step up. When I was at West Ham you looked at players and said, 'Yes, they'll do'. You could often look in the Championship and think players could make the step up. But here it's a different level."

On competing with Premiership rivals for a lower league gem, McGlynn adds: "Yes, you are always looking for a diamond, but even then you can be priced out of the market. Every Premier League club is aware of the best young British players, but the price of that potential can be very high and a bit of a gamble.

"But Chelsea and United have the finances to take that chance, which then inflates the market even more, so that's why it's very important that we continue to develop our own players through the Academy."