Argentine club Lanus claim Liverpool are in discussions to sign promising midfielder Sebastian Leto.
The 20-year-old has been tracked by Argentinian giants River Plate, while an unnamed Spanish club are also rumoured to be keen.
But Lanus have now broken off negotiations with River Plate and have revealed talks are taking place with Liverpool.
A fee of £1.85million has been mooted for Leto, with Lanus vice-president Ruben Ferreti hopeful of concluding a deal with the Premiership club.
"We have ended the conversations with River because they say that Leto is too expensive for their budget, but we have an expectation because we have received phone calls from Liverpool for the player," Ferreti told www.ole.com.ar.
"It seems to be that they would accept what we want for the player.
"Liverpool is interested, but we have to keep on having conversations. Nothing has been agreed yet.
"I think that the negotiations are going in the right way and, if we arrange something with Liverpool, it will surely be before the end of this week."
If Liverpool do tie up a deal for Leto, he will become the second Argentine youngster to move to Anfield in the past year after Gabriel Paletta.
The centre-half joined The Reds from Banfield last summer, although he has yet to make a significant impact on Merseyside.
CLICKY - Sky
The 20-year-old has been tracked by Argentinian giants River Plate, while an unnamed Spanish club are also rumoured to be keen.
But Lanus have now broken off negotiations with River Plate and have revealed talks are taking place with Liverpool.
A fee of £1.85million has been mooted for Leto, with Lanus vice-president Ruben Ferreti hopeful of concluding a deal with the Premiership club.
"We have ended the conversations with River because they say that Leto is too expensive for their budget, but we have an expectation because we have received phone calls from Liverpool for the player," Ferreti told www.ole.com.ar.
"It seems to be that they would accept what we want for the player.
"Liverpool is interested, but we have to keep on having conversations. Nothing has been agreed yet.
"I think that the negotiations are going in the right way and, if we arrange something with Liverpool, it will surely be before the end of this week."
If Liverpool do tie up a deal for Leto, he will become the second Argentine youngster to move to Anfield in the past year after Gabriel Paletta.
The centre-half joined The Reds from Banfield last summer, although he has yet to make a significant impact on Merseyside.
CLICKY - Sky
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