Liverpool manager, Jurgen Klopp, has been told he must raise the funds from sales, if he wants to sign Bayern Munich’s Thiago Alcantara, Kicker reports.
Thiago has been linked with a move to the Premier League champions this summer for a fee around £27million.
But the Reds do not have a huge transfer budget due to the impact of COVID-19.
Klopp is a big admirer of the 29-year-old, but needs to strengthen other areas of his squad as a priority before adding another midfielder.
The club’s owners, Fenway Sports Group, have now informed him that he needs to offload some of his current squad, before he can think about moving for Thiago.
Defender Dejan Lovren has already been sold to Zenit St.Petersburg for £11m, but Liverpool are looking to reinvest that money into signing Jamal Lewis from Norwich.
Liverpool are open to offers for several of their fringe players like Harry Wilson, Marko Grujic, Xherdan Shaqiri and Loris Karius.