Andy Carroll is preparing to fight for his place at Liverpool with both Newcastle United and West ham United priced out of a deal for the England striker, local reports suggest.

Carroll's has been a topic of much discussion, with both West Ham and the Toon showing interest in the 24 year old.

But the Reds have set a valuation of £17 million from which they won't budge as they seek to recoup some of the £35m they originally brought Carroll for in January 2011.

Since his big-money move to Merseyside, Carroll has rapidly become one of Liverpool's most expensive transfer mistakes, with the striker looking unlikely to fit into Brendan Rodger's system having failed to reproduce the promising form he showed at St James' Park.

Andy Carroll
Andy Carroll is preparing for a Liverpool return.

And while he reportedly is hoping to either stay at West Ham or head back to the north east next season, the Chronicle claims that Liverpool will insist on keeping Carroll if his valuation isn't met, and he is preparing to return to Anfield permanently when the season comes to an end next month.

A source told the paper: "Andy is realistic about next season. He is not expecting to be at Newcastle or West Ham.

"He's prepared to go back to Liverpool and fight for his place.

"Andy feels there is still some unfinished business at Liverpool and wants to continue his good rapport with the Kop."

Carroll has had a difficult season on loan at West Ham, with the 24 year old suffering from on-going injury problems.

His last 12 appearances have yielded six goals, and praise from manager Sam Allardyce as The Hammers close in on securing their Premier League status for next season.

With a World Cup coming up in 2014, Carroll will be looking to get maximum game time next season, in an attempt to force himself into Roy Hodgson's England squad.

And with that in mind, a move back to Liverpool could be detrimental to Carroll, but the club are holding all the cards as they look to recoup as much of their £35m outlay as possible.