Liverpool are closing in on young Argentinian midfielder Sebastian Eduardo Leto, according to the vice-president of his club Lanus.

Ruben Ferreti claims the 20-year-old Leto has attracted bids from River Plate and an unnamed Spanish club, but Liverpool are understood to be the only bidders willing to meet Lanus' £1.85 million asking price.

'There is interest from Liverpool, but nothing is concrete yet,' Ferreti said.

'We still have to go on discussing it.'

However, Ferreti added that he was optimistic a deal could be done.

'I have a good feeling about it,' he said. 'If a transfer is done, it will be done this week.'

Leto has played 34 matches for Lanus since breaking into the first team, scoring six goals.