Liverpool are preparing a bid to sign Palermo midfielder Josip Ilicic, according to Tutto Mercato Web.

The 25-year-old was in impressive form for the Italian side last season, scoring 10 goals and managing two assists in 31 Serie A appearances. However, his heroic efforts could not save Palermo from avoiding relegation to the lower division.

Josip Ilicic

With the Italian side featuring in Serie B for the upcoming season, it will be an uphill task for Palermo to hold on to their star player. Liverpool are likely to take advantage of the situation and make a €12m bid to bring the midfielder to Anfield.

Earlier in May, the midfielder's agent Amir Ruznic revealed that his client will leave Palermo during the transfer window. Ilicic's representative also confirmed there has been interest from Italy and abroad.

"He will certainly leave Palermo. He is wanted by several different sides, Italian and overseas, but we are still in the beginning of the process. In any case, Italian offers have the priority. AC Milan? I have not been contacted directly by the Rossoneri, but that doesn't mean the two clubs haven't been in talks," Sky Sports quoted Ruznic as saying.

However, Liverpool are likely to face competition from Serie A side Fiorentina for Ilicic's signature. The Slovenia international has already revealed that a move to the Italian club will be his first choice, should he decide to leave his current employers during the transfer window.

Despite his desire to make a switch to Fiorentina, the midfielder also admitted there has been no offer from them for his services.

"Fiorentina are the team I like the most in Italy, they made a great team and will fight for the Scudetto with Juventus next year. Am I close to Fiorentina? If it was so, I would have already signed with them," Ilicic explained.

"Fiorentina are the team who inspire me the most in terms of the quality of their football. And I also know that I can't jump steps. I'm a Palermo player and I can't dream of - let's say - Manchester United. That would be stupid," the Slovenian added.