Jermaine Pennant is set to reject a new Liverpool contract offer.

The Mirror says the winger is out of contract at the end of the season and boss Rafa Benitez is open to offers of £4million in the January transfer window.

But Pennant has so far refused to even speak to clubs prepared to offer that money, and is instead interested in joining AC Milan on a free in the summer.

Milan are prepared to offer the former Arsenal and Birmingham star a pre-contract agreement to ensure he moves to Italy.