Fernando Torres could be allowed to discuss personal terms with Liverpool over a £27million move after he returns from holiday next week.
The 23-year-old Spain striker's reported switch from Atletico Madrid moved a step closer on Saturday when his current club agreed a deal for Villarreal's Diego Forlan.
Atletico were keen to secure a replacement before sanctioning the sale of their talismanic captain, who came through the ranks at the capital club.
They now appear to have done so after Uruguay international and former Manchester United forward Forlan, currently on international duty in the Copa America, agreed a four-year deal.
A statement on the Atletico website read: "Atletico Madrid, Villarreal and the representative of Diego Forlan have reached an agreement for the transfer of the Uruguayan player to the Rojiblanco club for the next four seasons."
Liverpool boss Rafael Benitez has reassured fans he is working on signings "all the time" as he closes in on Torres.
The Reds boss remained tight-lipped over any deal for the striker but sources close to the club insist only personal terms now need to be concluded.
The Anfield club are expected to pay close to the £27million buy-out clause in the player's contract and, while Benitez refused to name names, he did admit he hoped new signings would be arriving "soon".
Benitez said: "You must always be excited at the start of a new season. You must also have confidence in your team and hopefully we will soon bring in the new players that we want to make the squad better.
"We are working on new signings all the time. As I've already said, the spine of the team is in place and now we just need to add to that."
That spine includes securing the likes of captain Steven Gerrard, Jamie Carragher, Xabi Alonso, Jose Reina and - this week - Mohamed Sissoko on long-term deals.
Also staying at Liverpool are five members of last season's FA Youth Cup winning squad, who have been rewarded with extended contracts that will keep them at the club until at least 2010.
Craig Lindfield, Jay Spearing, Ryan Flynn, Stephen Darby and Robbie Threlfall have all put pen to paper on the new deals and Reds boss Rafael Benitez is delighted to have secured their services for the foreseeable future.
He told the club's official website: "It is great news these five boys have signed new contracts with the club.
"They've got a great opportunity now to prove what they can do. They need to keep learning, work hard and show what they are capable of."
form teamtalk.com
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