Newcastle United are open to a player-plus-cash swap offer from Liverpool for winger James Milner.

The Telegraph says Milner's switch to Liverpool has moved a step closer with Newcastle interested in a player-plus-cash deal for the England Under-21 midfielder.

Newcastle are reluctant to sell the 22-year-old this summer but are keen on an exchange deal worth £7m plus Danny Guthrie.

Guthrie, who spent last season on loan at Bolton, is thought to have confided in friends that he expects to join Newcastle which has increased speculation that Milner is Anfield bound.