Liverpool have moved closer to bringing Craig Bellamy back to Anfield after Manchester City agreed to let the striker leave for free, according to The Mirror.

City are willing to let the 32-year-old leave for free in a bid to remove him from their wage bill.

The Welsh striker earns £95,000 per week and City will look to negotiate a settlement with the player for the final ten months of his contract.

Wales manager Gary Speed believes that Liverpool would be an ideal destination for Bellamy.

"It’s only natural Craig is going to be linked with top clubs because he is a top player," he said.

"Liverpool are a fantastic club and if that’s true and it comes off, that would be great.

"Hopefully by the end of the transfer window things will be sorted out."

Bellamy is understood to be keen on a move back to Merseyside after he scored seven goals in 27 appearances for the Reds during the 2006/07 season.