Among his targets are prolific Ajax striker Luis Suarez and West Ham's Victor Obinna, who is currently on-loan from Italian giants Inter Milan.
With Tottenham also interested, it could take up to £18 million to land the Uruguayan forward. However Obinna would cost considerably less, with around £8m believed to be enough to secure the Nigerian's services.
The Reds are also being strongly linked with moves for out of favour Manchester City winger Shaun Wright-Phillips and Lille hit-man Gervinho.
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Chelsea are still on the look out for defensive reinforcements in January, with a move for Borussia Dortmund's Neven Subotic seemingly dead after the German club refused to sell their star-asset.
Carlo Ancelotti is now considering a move for Atletico Madrid central defender Diego Godin. The Blues will have to pay up to £15m to bring him to Stamford Bridge.
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Manchester United and Tottenham are monitoring Partizan Belgrade defensive midfielder Radoslav Petrovic.
Stoke are close to completing the signing of Hoffenheim striker Demba Ba.
Newcastle are interested in Wolfsburg midfielder Karim Ziani.
Everton are hopeful of tying up a £1.5m deal for Burnley winger Chris Eagles.
Source: DSG
