Liverpool have been outbid by Manchester City for Juan Mata, according to reports.
The Spanish midfielder, who plays predominantly on the left flank, has been coveted by a number of clubs across Europe, with Reds boss Kenny Dalglish thought to be keen on bringing the 23-year-old to England.
However, Manchester City have joined the race for the player, and The People claims Roberto Mancini has tabled a £22 million offer for the player. The paper goes on to claim the Eastlands outfit have spoken to Valencia president Manuel Llorente over the move.
It's reported in the same story that Liverpool director of football Damien Comolli offered £17 million for Mata, although a lack of European football could now be a major stumbling block for the Anfield outfit.
Liverpool have been linked with a number of wingers in recent weeks, with Ashley Young, Eden Hazard and Xabi Prieto all speculatively placed on the Reds' summer wishlist.
City have also been linked with a number of more high-profile targets, with Barcelona star Xavi thought to be one of those on the club's radar.
Mancini's spending power places the club in a position of dominance, and is likely to lead to Liverpool missing out on Mata.
With Valencia's financial stability still uncertain, the La Liga outfit is likely to sell to the highest bidder, leaving Liverpool to look elsewhere when the transfer window re-opens.