Liverpool: Liverpool

Espanyol are ready to test Salif Diao's determination to remain at Liverpool in order to prove his worth.

The Senegal international is the latest target for the Barcelona-based outfit, who have already snapped up former Barca hit-man Dani Garcia this summer.

Diao is the latest name in the frame for a possible move to Montjuic and it is believed that talks over a possible loan move have already started with Liverpool.

Liverpool youngster Florent Sinama-Pongolle could be set for a loan move back to his native France - if he does not feature in the plans of The Reds' new manager Rafa Benitez.

Sinama-Pongolle is still on the fringe at Anfield, but is hoping to make an impression on Benitez in pre-season training.

Should the young striker not fit into Benitez's team, he is open to a return to France - with St Etienne at the front of the queue.

German defender Markus Babbel has hinted he would like to return to his homeland to resurrect his international career.

Stuttgart coach Matthias Sammer revealed an interest in the 31-year-old Liverpool man earlier this week.

With less than one month to the start of the new English Premiership season, Senegal's El Hadji Diouf has yet to be assigned a squad number at Liverpool.

The former African Player of the Year wore the number nine jersey last season but it has now been allocated to new signing Djibril Cisse.

Markus Babbel is expected to complete a return to the Bundesliga later Friday with talks at an advanced stage between the former Bayern Munich defender and VfB Stuttgart.

Speculation that new coach Matthias Sammer was looking to bring the experienced defender back to Germany was confirmed by the club spokesman Oliver Schraft.

Barcelona president Joan Laporta revealed that his club have been put off making an immediate bid for Liverpool striker Milan Baros - although he did not rule out a move for the player in the future.

Markus Babbel is expected to tie up the final details of his free-transfer move to Stuttgart on Monday after agreeing terms with the Bundesliga club.

The 31-year-old has reached agreement with Stuttgart on a two-year contract and undertook a medical on Friday.

The former Liverpool defender, who this week reached agreement with the Anfield club to terminate his contract, has joined up with his future Stuttgart team-mates at their training camp in Going, Austria.

I wish Babbel all the best in the future. He was a class act for us and I have many fond memories of him, it's just a shame he had to get that illness which effectively ended his career with us (even though we gave him a new contract whilst he was ill, name another club that would do that...)

He just didn't have it in him anymore at the top, and when he through a fit after GH substituted him that signalled the beginning of the end.

Liverpool manager Rafael Benitez has indicated that he is on the look-out for a new midfielder after confirmation that Vladimir Smicer is out for six months.

After the 1-0 defeat to Porto, it emerged that the Czech international has sustained severe ligament damage just weeks after coming back from Euro 2004.

Michael Owen has revealed he is set to sign a new contract at Liverpool because he does not want to let down the club which is 'in his blood'.

The England striker has just a year left on his current deal but has been in negotiations to extend his stay at Anfield for some time and the signs are he will sign a new three-year agreement on the squad's return from their tour of the USA.

Liverpool pulled Austrian outfit AK Graz out of the hat in Friday's draw at Uefa headquarters in Switzerland.

Liverpool midfielder Anthony Le Tallec has joined French club St Etienne on a one-year loan deal.

The 19-year-old impressed during Liverpool's pre-season campaign but has struggled to break into the first team since joining in June 2002.

A Thai media tycoon has insisted his consortium is still interested in purchasing a 30% stake in Liverpool.

The Anfield club's chief executive Rick Parry said talks with the group had gone "pretty quiet".

But Paiboon Damrongchaitham, chairman of GMM Grammy entertainment, said that was a "misunderstanding" and discussions were ongoing.

Steven Gerrard flew back from New York today insisting he would be fit to lead Liverpool in their Champions League qualifier next week.

The 24-year-old midfielder limped out of last night's 2-1 win over Roma in New Jersey, suffering a thigh injury in the first half.

Liverpool do not have another game until next Tuesday's third qualifying round first leg away to AK Graz in Austria and their skipper is desperate to play.

Liverpool boss Rafa Benitez could be ready to return to Spain to make his second signing of the summer with Barcelona winger Luis Garcia reported to be on his wanted list.

Benitez is keen to bolster his midfield options having lost Vladimir Smicer to long-term injury and is exploring transfer targets.

Liverpool are reported to have made enquiries for Garcia about a possible loan signing for the season.

Real Mallorca and Bolton are the latest sides to be interested in Liverpool misfit El Hadji Diouf, while Blackburn are eyeing a move for Steve Finnan. Liverpool's summer clearout continued on Tuesday night when young Frenchman Anthony Le Tallec joined St Etienne on loan, and the Anfield exodus looks set to continue.

New boss Rafa Benitez has already signalled that Diouf is not in his plans as he was not handed a squad number and was left behind from their tour of North America.

The Senegal marksman has insisted he will not leave Anfield until he has face-to-face talks with the new manager, and is reluctant to walk away from the final two years of his lucrative deal.

Spain seems his likely destination with Malaga and Levante already keen on him, and Mallorca have now entered the race for his loan signature.

Premiership side Portsmouth have been keen to keep the 23-year-old in England and Bolton boss Sam Allardyce is now mulling over a possible swoop.

Liverpool are being linked with a shock move for Everton's unsettled Denmark international midfielder Thomas Gravesen.

Gravesen's current Goodison deal expires next summer and the boardroom uncertainty at the club has made him unwilling to agree a new contract.

With that in mind, Everton could be looking to sell the 28-year-old and their city rivals are reported to be interested.

Rangers have completed the signing of Gregory Vignal on a one-year loan deal from Liverpool.

The French left-back has impressed Light Blues' manager Alex McLeish in pre-season friendlies against Tottenham and Fulham.

But Vignal is also now available for selection for next week's Champions League third qualifying round, first leg at CSKA Moscow.

Liverpool ace Michael Owen could sign his new contract before the Premiership season kicks off on Saturday week.

The striker has gone on record saying that he is happy at Liverpool because "the club is in my blood" but the all-important day when he finally puts pen to paper on a new three-year contract is still to come.

But he has returned from Liverpool's US tour insisting that an agreement is a step nearer after meetings were held between the club and his agent Tony Stephens in New York last week.

Outcast striker El-Hadji Diouf has had transfer talks with Malaga during a flying visit to the Spanish club.

The Senegal striker has been told by new Liverpool boss Rafael Benitez that he has no future at Anfield and should find another club.

Diouf was on a plane to Spain soon after Benitez had returned to Merseyside after Liverpool's return from their USA tour.