Liverpool will make efforts to sign Leeds's Harry Kewell this week having been frustrated in their attempt to buy Damien Duff by Blackburn's valuation of the Irish winger.
Kewell, who had been expected to join Arsenal, has a year to run on his current contract at Elland Road. His refusal to commit his long-term future to the Yorkshire club has prompted Leeds to seek a fee of around £7 million for his services.
Gerard Houllier is a long-term admirer of the Australian but had made Duff his principal transfer target, confident that he could prise the 23-year-old from Ewood Park for substantially less than the £17 million that would trigger his contract's release clause.
However, those hopes proved unfounded with Rovers sticking by that valuation, prompting the Frenchman to return to Kewell as a cheaper option.
Speculation over the weekend that the deal has already been concluded may be premature, with Leeds yet to receive a formal offer from the Merseysiders, but the 24-year-old's representative, Bernie Mandic, should meet Liverpool officials this week.
Meanwhie, Alex Ferguson is investigating the possibility of tempting Mark Hughes from Wales to become his assistant manager at Manchester United, though the former forward would probably retain control of his national side until Euro 2004.
According to his contract Hughes, who had two spells at Old Trafford as a player, could join a Premiership side if the Football Association of Wales receive £250,000 in compensation.
The recruitment of a new number two, after Carlos Queiroz's move to Real Madrid last week, will be Ferguson's priority when he returns from a month-long holiday today.
Blackburn midfielder David Dunn will seal a £5.5 million move to Birmingham, a record for the Midlands club, before the end of this week.
Inter Milan hope to land either Robert Pires or Freddie Ljungberg from Arsenal in a player-exchange deal.
The Serie A club's new sporting director Marco Branca said: "Pires and Ljungberg are the two players we believe would benefit us the most technically.
"Player-exchange is the way to go in future because of the financial situation in the transfer market."
