Liverpool manager Brendan Rodgers is prepared to allow Sebastian Coates to leave the club in the coming weeks after another poor display in the shock 3-2 FA Cup loss to League One side Oldham on Sunday afternoon.
The Uruguay international has failed to force his way into the first team plans of Rodgers and has struggled on the few occasions that he has been handed a start.
On a day where Rodgers was critical of his young players, Liverpool's defence crumbled under pressure from Paul Dickov's side as 22-year-old Coates was consistently outmuscled and run ragged by former non-league striker Matt Smith.
Rodgers has previously admitted that he would be willing to loan out the imposing centre-back so that he could gain more regular first team football, but it now seems as though he is prepared to allow Coates to leave the club.
The Mirror has reported that Brazilian side Gremio are ready to make an offer of £7million that would be extremely difficult for Liverpool to turn down.
However, the one problem with the deal is that the transfer window for South American clubs does not open until after the end of January by which point Liverpool will be unable to replace the defender.
Rodgers will need assurances from the club and the player that the deal will go forward so that he can look to find a suitable replacement before the end of January.
The Mirror believes that the Liverpool hierarchy will ask Gremio to make a concrete offer in the next few days so that they can quickly turn their attention to identifying a long-term solution.
Liverpool have very little in reserve as Jamie Carragher has begun to see his playing time severely limited, meaning that any injury to Martin Skrtel or Daniel Agger would leave Rodgers with very few options.
While the Reds will need a concrete offer from Gremio it seems that Coates may well be prepared to leave the club after admitting that playing regularly was a priority as he looks to cement his place in the Uruguay team.
"I'm going through a complicated moment here at Liverpool," said Coates, as quoted in the Mirror. "I want to play for the Uruguayan national team and I must play for my team to achieve that.
"I do know the other defenders are playing really well and I must wait my chance. But, again, I want to play now."