LIVERPOOL EXPECT to sign Glen Johnson within the next week after Portsmouth accepted their €22 million bid for the England right-back and Chelsea withdrew from the race for their former employee. The deal will represent a significant breakthrough in the transfer market for Rafael Benitez, who learned yesterday that Real Madrid’s interest in Xabi Alonso has faded.

Johnson, along with David Silva and Gareth Barry, was a target for Benitez this summer and is clear to complete his move after Liverpool matched Chelsea’s offer for the 24-year-old last night.

Though unable to compete financially with Chelsea and Manchester City, who also bid for Johnson, Liverpool are owed €8.3million by Portsmouth from the deal that took Peter Crouch to Fratton Park last year. That will be written off as part of the Johnson fee, with Andrea Dossena and possibly Alvaro Arbeloa being sold by Liverpool to swell Benitez’s budget beyond a net €23.7million.

Johnson considered a straight choice between Liverpool and Chelsea after opting against a move to City because of their lack of Champions League football. The England international had indicated to Anfield officials that he favoured a move to Merseyside and that decision became automatic when Chelsea decided against re-signing the player they sold for €4.74million in 2007. It is believed problems selling Jose Bosingwa may have forced Chelsea’s sudden retreat, with the Stamford Bridge club unwilling to add another expensive right-back to their squad without offloading the €19.2million Portugal international.

Meaanwhile, Liverpool captain Steven Gerrard has revealed he is considering retiring at the end of his current contract. The 29-year-old England midfielder has a deal until 2013 with the club, but admits it could be his last in football.

“I’ll be 33 at the end of my contract, and it’s doubtful whether I’ll carry on,” he said in an interview with France Football. If I decide to stop, I’ll be proud of the fact I’ve spent my entire career with the same club.”

Gerrard also revealed he gave serious thought to leaving Anfield for Chelsea four years ago, but changed his mind late in the day.

“I’ve thought about leaving Liverpool twice during my career, especially in 2005 when Chelsea was a temptation,” he added. “But I’m glad I never turned those thoughts into reality.”