Ex-England boss Fabio Capello has emerged as one of the strong candidates to be the next Liverpool manager, according to the Telegraph.
The report says that Capello's camp have made it known to the Reds' American owners that he would be interested in a move to Anfield. It is understood that the Italian has two lucrative offers from the Middle East but has put them on hold as his preference is a job in the Premier League.
Meanwhile, Marseille manager Didier Deschamps has ended speculation linking him with Liverpool by committing his future to the French club.
Deschamps was seen as one of the potential targets for the Reds, however, the 43-year-old has stated that he expects to be in charge of the Ligue 1 outfit next season.
"It is expected that I will be there [Marseille] next season. When it goes badly, there is need to recharge. I will leave on vacation but it is expected that I'll be there for July 2," ESPN quoted the former Chelsea midfielder.
Swansea City boss Brendan Rodgers, Borussia Dortmund manager Jurgen Klopp and Ajax coach Frank de Boer had already rejected the approach from Anfield, while Andre Villas-Boas has said that he will not rush into a decision and will study all his options carefully before committing to a club.
Liverpool had held talks with Wigan Athletic manager Roberto Martinez on Sunday and the Spaniard is considered as the favourite to nab the position at this point. However, Fenway Sports Group will go ahead with their plan to approach all the 12 candidates they have identified before making the call.
And finally, former Reds manager Rafael Benitez has not been contacted by the club regarding a potential move back to Merseyside, claims Sky Sports pundit and Spanish journalist Guillem Balague.
While Benitez remains one of all-time favourites among the Anfield faithful, it is understood that Fenway has not approached the 52-year-old and is unlikely to do so.
"Rafa Benitez has not been approached by Liverpool and I believe there is no plan to do it for now," Balague tweeted.
The search for a new tactician had gotten underway soon after the sacking of Kenny Dalglish last week, following a dismal season in the league, in which the Reds finished below local rivals Everton.