Newcastle are desperate to hold onto Hatem Ben Arfa and are ready to offer their playmaker a new contract in a bid to keep Liverpool from nabbing him in the summer.
Liverpool have been heavily linked with a move for the French international, with Brendan Rodgers especially keen to bring the 25-year-old to Anfield at the end of the season, and even reportedly sounding out Alan Pardew over a possible move.
However, worried of Liverpool's interest, are preparing a lucrative new contract for Ben Arfa, who has also been linked with a move to Arsenal, according to the Daily Mirror.
Ben Arfa has seen his season disrupted by injury, but has always been effective whenever he has been on the pitch for the Magpies and has previously stated his desire to play for a bigger club capable of competing in the Champions League.
While Liverpool already have quite a few playmakers in their lineup, bringing someone of Ben Arfa's quality can only make them better, although the move might cast a doubt on Stewart Downing's future at Anfield, despite improving considerably in the past few months after a difficult start.
Meanwhile, Liverpool are part of a trio of English Premier League clubs, alongside Everton and Tottenham, chasing Feyenoord's highly-rated center-back duo Stefan De Vrij and Bruno Martins Indi.
The two defenders have impressed scouts this season with their performances for the Dutch club, and have slowly but surely made their mark in the Dutch setup as well under manager Louis Van Gaal.
De Vrij and Martins Indi, however, are likely to cost interested parties a combined fee of £25 million ($38 million), which could scare off most of the clubs.
However, making a move for one of the two might be more likely, with Rodgers on the lookout for a defender. Jamie Carragher is set to retire at the end of the season, while Sebastian Coates is yet to convince the manager.
De Vrij admitted he was aware of interest from England and said he would decide his future only at the end of the season.
"I want to see what is happening now," the 21-year-old said.
"I will focus on playing for the club and for Holland, but I won't sit down with the club now about a new contract."
