Spain international Xabi Alonso is heading to Arsenal, accorinding to reports on Monday, paving the way for Liverpool to finally land Aston Villa midfielder Gareth Barry.
The Reds have been chasing Barry for much of the summer but their interest cooled when Alonso's proposed transfer to Juventus fell through.
Gunners boss Arsene Wenger has been a long-time admirer of Alonso, but is only prepared to offer £10.5million for the Spaniard, while Liverpool value their player at £18million, similar to the amount they are likely to have to pay for Barry.
Benitez has already sold Peter Crouch, Scott Carson and John-Arne Riise this summer, and is also believed to be willing to offload Jermaine Pennant and Andriy Voronin.
Alonso made his name with Real Sociedad, before heading to Anfield in the summer of 2004.
The 26-year-old has helped the Reds to two Champions League finals, scoring in the victory over AC Milan in 2005.
He made his international debut in April 2003 against Ecuador and was part of the Spain squads for Euro 2004, the World Cup finals in Germany two years later and this summer's successful Euro 2008 campaign.