Peterborough are reportedly leading the chase for highly-rated Liverpool youngster Victor Palsson.
According to talkSPORT, Posh are interested in taking the Liverpool reserve team captain to London Road on loan as they look to return to the Championship at the first time of asking.
The 19-year-old Icelandic midfielder has impressed since moving to Anfield in January 2009, but a lack of opportunities in the Liverpool fist team has seen him linked with a move to the Football League.
The versatile teenager is viewed as one of the brightest talents to emerge from Iceland in recent years and has established himself as a key player in John McMahon's Liverpool reserves.
However, it appears that McMahon will have to make do without his captain for the short term as he nears a temporary move away from Liverpool.