Liverpool hope to formalise Michael Owen's return from Real Madrid early next week after finally breaking their silence and admitting they were keen on recruiting the England striker.
Owen issued a statement on Wednesday indicating his desire to return to Anfield after a frustrating season at the Bernabeu and, having now ruled out a move to Newcastle United, will be heartened by Liverpool's first public admission they are hopeful of securing his signing.
Negotiations continue between the European champions, Real and Owen's representatives but, with the transfer deadline just five days away, talks are expected to gather pace.
"We have still got our fingers crossed," said Liverpool chief executive Rick Parry, who was attending yesterday's Champions League draw in Monaco.
"There's probably been too much speculation already but we will see next week. Of course we are always encouraged when any player says he wants to join Liverpool. There's certainly never been a split between us and Rafael Benitez over Michael Owen or any other player."
The suggestion that Benitez might not be convinced of the urgency to re-sign Owen had emerged after the Spaniard continually insisted his priorities lay in strengthening the team in other areas. He continues to target a centre-half and a right-sided midfielder, with a deal close for Bolton's Stelios Giannakopoulos.
There were also indications Liverpool would struggle to meet Real Madrid's valuation of a player who cost only £8 million a year ago. Certainly the Merseysiders would not be able to stretch to the reported £18 million offered by Newcastle on Wednesday, but a deal where a relatively small down-payment is made and the £4 million still owed by Real on the original transfer is waived is a possibility.
Chelsea and Liverpool were handed the Champions League draw they feared yesterday, ending up in the same group and facing Real Betis among their other opponents. Anderlecht complete a group - described by Chelsea's manager Jose Mourinho as "very dangerous" - which brings a rapid repeat of last season's semi-final when Liverpool eliminated Chelsea en route to winning the Champions League.
Owen's decision not to join Newcastle may force the club to renew their interest in Deportivo La Coruna's Albert Luque. Owen's probable move to Liverpool has also increased the gloom at St James' Park after the club's goalless start in the Premiership.
Reports from Spain yesterday claimed Luque was withdrawn from training, suggesting a possible development, but there is still a differential in the clubs' valuation of the 27-year-old forward. It is understood Deportivo want as much as £10 million for him.
Newcastle will be put off by that sum and now have again been linked with Tottenham's Robbie Keane, as the north-east club seek to placate an increasingly agitated fanbase.
Supporters turned on the board during the 2-0 defeat at Bolton on Wednesday, with the chairman Freddy Shepherd receiving sustained abuse.
"Confidence is not very high at the moment," said striker Alan Shearer after Wednesday's loss. "I would be lying if I said anything else. We have not created the chances to come away with three points. From my point of view, the time to worry is not when you are missing chances but when you are not creating them. And we are not, at the moment.
"We are scratching our heads as we all know we need bodies in. Whether we get those before the transfer window (closes), who knows?"
Liverpool's previous manager, Gerard Houllier, has enquired about his former club's French striker Djibril Cisse and is believed to have £8.5 million to hand after failing to entice Milan Baros to Lyon.
