Kenny Dalglish
Dalglish wants to bring another youngster on board.

All of the latest transfer rumours involving Liverpool. Kenny Dalglish is ready to bid for Birmingham defender Scott Dann, Alvaro Pereira and are set to rival Arsenal and Chelsea's bids for James McCarthy.

Liverpool are said to be weighing up a £12m bid for Birmingham defender Scott Dann. Liverpool have had a poor start to their preseason, conceding three goals in four games, and Kenny Dalglish is now ready to put a stop to the leaky defence. Kenny Dalglish is said to be ready to offer the full asking price for Scott Dann and is confident of landing the 22 year old by the start of next week.

Liverpool are rumoured to be ready to challenge Arsenal and Juventus in pursuit of capturing Uruguayan left back Alvaro Pereira. The defender has risen to attention of some of Europe's top clubs after a string of stunning performances in the Copa America and Dalglish and Damien Comolli are ready to bid for the player.

Kenny Dalglish is keen to strengthen his left back options after missing out on Gael Clichy and Pereira is thought to be the man Dalglish sees a long term solution to the problem position.

"Right now we have registered interest from Arsenal and Liverpool," said Pereira's agent Luca Maurelli. The player himself has remained coy on the rumours by adding: "Liverpool? I do not know, I cannot say anything. My only wish is to celebrate Uruguay's big win."

Reports in the Daily Mirror suggest that contract talks between James McCarthy and Wigan Athletic have broken down and Liverpool have now been alerted to the situation. McCarthy is valued at around £15m but Latics chairman Dave Whelan wants to keep the player at the DW Stadium.

The Irish international has been linked with a move to Liverpool all summer and Dalglish is keen to bring the player to Anfield. McCarthy falls into line with Liverpool's new transfer policy of signing the brightest young talent available both in England and Europe.