Liverpool have reportedly been casting a watchful eye on Fulham's Joao Palhinha as they scope out potential midfield targets for the summer window.
The Reds are understood to have dropped their interest in signing Borussia Dortmund's Jude Bellingham, who is likely to command at least £130m to leave the German giants this summer.
Liverpool were long considered one of the favourites to sign the 19-year-old, but Fenway Sports Group have decided against spending a club-record fee on one player, which Jurgen Klopp was on board with.
Instead, the Reds will look to bring two and potentially up to three new midfielders to Anfield for the 2023-24 season, and club chiefs are scouring the market for cheaper alternatives.
According to Football Insider, Liverpool have had their eye on Fulham's Palhinha throughout the campaign and have sent scouts to watch him on several occasions.
Upon their return to top-flight football last summer, Fulham prised Palhinha away from Sporting Lisbon for £17.6m, and the Portugal international has quickly adapted to life in the Premier League.
Palhinha has four goals to show from 31 games in all tournaments for Marco Silva's side, earning plenty of plaudits for his dogged displays and making a league-high 105 tackles this term.
The 27-year-old is under contract at Craven Cottage until 2027, meaning that Fulham are under no pressure to sell on the cheap, but Liverpool supposedly possess a positive relationship with his agent Jorge Mendes.
The Reds could face competition from Manchester United to sign Palhinha, though, and Fulham boss Silva insisted last month that the midfielder was content at Craven Cottage.
"He (Palhinha) is happy here. It is the same with players and managers. It is impossible to control what people write," Silva told a press conference when asked about interest in the Portuguese.
"Whether it is managers or players are linked with clubs, or if there is interest. To be honest, it is something that we don't lose time thinking about these situations. With Joao it is the same."
Liverpool could wave goodbye to as many as four midfielders this summer, with Naby Keita and Alex Oxlade-Chamberlain both set to leave when their contracts expire.
Arthur will also return to Juventus at the end of his nightmare loan spell, while James Milner's deal is up at the end of the season, but the 37-year-old could still be handed a short-term extension.
Chelsea's Mason Mount is rumoured to be Liverpool's top midfield target after they withdrew their interest in Bellingham, while Conor Gallagher, Declan Rice, Moises Caicedo, Alexis Mac Allister, Nicolo Barella and Ryan Gravenberch have all been mentioned as potential alternatives.
Liverpool sit eighth in the Premier League table - 12 points off the Champions League places - and return to action away to Leeds United on Monday night.
