Maxi Rodriguez has been told he can leave Liverpool and is expected to complete a move to Spanish side Espanyol, according to reports in the Catalan press.
New boss Roy Hodgson has deemed the Argentina midfielder surplus to requirements as he rebuilds the Reds' squad but a transfer fee could yet prove a stumbling block in any switch back to his former club, reports El Mundo Deportivo.
Espanyol are seeking a loan deal for Maxi with a view to a permanent move at the end of the season, should the player impress. Liverpool are thought to want a permanent transfer.
Collector's item? Maxi (left) in action for Liverpool last season
However, a deal could go through within a matter of days with the two clubs said to be in advanced talks.
Maxi has made just 17 appearances for Liverpool after signing a three-and-a-half-year deal in last season's January transfer window.
He spent three years playing for Espanyol between 2002-2005 before a move to the Vicente Calderon, where he fell out of favour last term before the £1.5million move to Anfield.