Liverpool are ready to sell winger Stewart Downing for as little as £5 million as Newcastle consider an offer.
Downing is set to be made available for transfer at considerably less than the £20 million that the Reds paid Aston Villa for him in 2011, sources said.
The 29-year-old rejected interest from West Ham in July, insisting that he wanted to stay and fight for his place at Anfield.
But he has not played in either of Liverpool’s last two friendlies and looks increasingly likely to be pushed to the margins if he stays on Merseyside.
Newcastle have so far not made an offer for Downing, with their manager Alan Pardew understood to see addressing a shortage of strikers as a priority.
But they are interested in the England international winger, who has two years remaining on his Liverpool contract.
Downing, signed by then-manager Kenny Dalglish in the summer of 2011, had a dreadful first season as Anfield, failing to score or provide an assist in the Premier League.
He then had a tough start to his second season after Brendan Rodgers replaced Dalglish.
The winger frequently found himself playing out of position at left-back, and also had his attitude questioned publicly by Rodgers in the early weeks of the season.
Downing was linked with a November loan move to Championship side Middlesbrough - his first club - and was told by the Reds boss that he was free to leave.
However, the former Villa man responded with improved displays, scored his first league goal for Liverpool against Fulham on December 22 and won back a regular place on the wing.