Liverpool are reportedly set to miss out on the signing of Real Madrid striker Jose Callejon, as Napoli close in on a deal for the highly-rated former Spain under-21 international.

According to talkSPORT, Napoli have agreed a fee of £7 million for the transfer of 26-year-old and the player is now set to pen a four-year contract ahead of officially finalising a move.

Callejon's seemingly imminent move to the Stadio San Paolo means Liverpool will be beaten to his signature by former Anfield manager Rafael Benitez, who was appointed by Napoli at the end of last season.

Liverpool's failure to land Callejon follows their inability to clinch the signing of Henrikh Mkhitaryan, who joined Borussia Dortmund earlier this week after the Reds had indicated they were ready to activate his release clause.

Dortmund, however, pipped Liverpool to a deal for the Armenia international, with the Champions League club paying £23.6 million to bring the player to the Westfalenstadion.

More importantly for Liverpool, meanwhile, is retaining the services of striker Luis Suarez beyond the transfer deadline, after the Uruguay international outlined his desire to leave the club.

Suarez has been linked with Arsenal and Chelsea, but says no club have made a formal approach for his services.

"It’s good to know that I am still valued by teams like Arsenal. Friends call me up to ask if I am moving to Chelsea," he told Uruguayan radio station Sport 890.

"Don’t believe everything you read or hear! I am sometimes off the grid. I don’t even know where my phone is sometimes.

"There have been no offers yet but Liverpool know exactly what is going on and what I want."

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