This story has been reproduced from today's media. It does not necessarily represent the position of Liverpool Football Club.
Liverpool are weighing up a move for Real Madrid forward Isco with the Spanish club willing to listen to offers for the 22-year-old playmaker, Goal understands.
With the Liga giants close to an agreement with Monaco for James Rodriguez, Isco, who joined the club from Malaga back in 2013, could be sacrificed as Carlo Ancelotti trims his bulging squad ahead of the 2014-15 campaign.
Goal revealed on Thursday that Ligue 1 side Monaco had informed Madrid that it would take a mega £70 million bid to land James - a figure that president Florentino Perez would be willing to pay as he looks to land his marquee Galactico signing.
And with Toni Kroos having already arrived from Bayern Munich, and Falcao another Colombian at the top of Ancelotti's wanted list, Isco is the most likely of Madrid's talented set of attacking midfielders to be moved on.
Manchester City, who have a long-standing interest in the Spaniard, are another Premier League club assessing the situation although Goal understands Manuel Pellegrini's men would be more interested in a loan deal.
Madrid, however, are looking to free up funds and would prefer a permanent transfer leaving Liverpool, who are yet to spend any of the cash they recuperated from the sale of Luis Suarez to Barcelona, in pole position.
Sami Khedira, who Goal revealed is interesting both Chelsea and Arsenal, is another who would be allowed to leave the Bernabeu for the right price although Manchester United target Angel Di Maria is set to be retained unless Madrid's lofty £50m valuation is met.
As a result it is Isco who is seen as a more expendable commodity despite having made 32 Liga appearances for Ancelotti last season.
The former Malaga star, who can operate in any position behind the central striker, is not keen on a bit-part role behind the likes of Cristiano Ronaldo, Gareth Bale and James and could be attracted by the prospect of becoming Liverpool's main man following the departure of Suarez.