Liverpool are on the verge of bidding for Peruvian winger Juan Manuel Vargas, according to reports in Italy.
Corriere dello Sport claims the Reds are willing to pay as much as €20 million for the Fiorentina winger, who has been linked with an Anfield switch in the past and was rumoured to be subject of a bid in Janiuary.
Liverpool director of football Damien Comolli is a known admirer of the player, whose versatility has seen him play at both full back and central midfield for both club and country.
Vargas moved to the Viola back in 2008, with the Serie 'A' side beating Real Madrid to the €12 million signature. His stock has continued to rise at the Stadio Artemio Franchi, and now a number of clubs across Europe are believed to be interested in the player's services.
Kenny Dalglish's Liverpool side is thought to be leading the race, although Manchester City are also thought to have been tracking the player for several months now.
Whilst the Merseysiders can't match the financial power of City, manager Dalglish has been promised transfer funds by Liverpool owners Fenway Sports Group.
The Americans backed the Scottish boss in January and helped bring Luis Suarez and Andy Carroll to the club, and a number of players in a variety of positions are again thought to be on the Anfield radar.
Vargas joins Ashley Young, Stewart Downing and Eden Hazard as potential winger additions, while Liverpool are also thought to be chasing a striker, left back and central midfielder during the window.