Celtic are interested in signing Liverpool centre-back Ben Davies, Dominic King reports.

What's the latest transfer news involving Ben Davies?

The Daily Mail's Northern football correspondent took to Twitter to disclose that the Hoops are one of three clubs that are keen on signing the 6 ft 1 defender. 

"Celtic, Sheffield United and Bournemouth, meanwhile, all interested in signing Ben Davies. Sheffield United have had an initial loan enquiry turned down" he said.

Would Davies be signed on loan or permanently?

It is not yet known if the Hoops intend to sign the 25-year-old on a permanent transfer or on loan.

But a permanent signing looks to be the more likely option, as King revealed that Sheffield United's loan enquiry was rejected by the Anfield club.

Celtic won't know the transfer situation unless they ask the question to Liverpool. Perhaps they'd still be able to agree a loan deal with a fee or an obligation to buy.

Dominic King reports that Celtic are interested in signing Liverpool defender Ben Davies

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Would it be a gamble to sign Davies?

It is a bit of a gamble to sign Davies as he has yet to play a first-team game for Liverpool. He joined the former Premier League champions from Preston in the January transfer window for a fee of £1.6m.

But as Transfermarkt shows, Davies failed to make the breakthrough into Jurgen Klopp's side. There is an inevitable concern over signing a player who has been out of action since January. 

Davies could take a while to get up to speed with his teammates after being inactive for so long, while Celtic's season is already underway both domestically and in Europe. 

But Davies was a regular for Preston last season before joining Liverpool, making 19 appearances for the Deepdale side. He hasn't missed games due to injury either, which means that if he joins the Hoops he should at least have a clean bill of health. 

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Would Davies address some key problems for Celtic?

The versatile defender would add strength in depth to Celtic's backline, being capable of playing at centre-half or on the left flank. 

Looking on Transfermarkt, both the centre-back and left-back areas of the squad could do with some additions.

There are three left-backs in the squad currently - Greg Taylor, Boli Bolingoli and youngster Adam Montgomery. Of that trio, Taylor is the player who has been selected to start so far this season by Ange Postecoglou, with Montgomery making one substitute appearance.

The Hoops have more bodies available at centre-back but only three are available for selection right now - Christopher Jullien is injured.

Davies could be used in the centre-back role if he joins the Bhoys, while also providing added cover and competition for Taylor at No.3.