Dominik Szoboszlai wants to join Liverpool with Newcastle pulling out of the running for the midfielder, which has increased the possibility of a deal being concluded with RB Leipzig.
Liverpool held positive meetings with Szoboszlai's representatives on Monday and are pressing ahead with discussions over a deal for the 22-year-old, who has a £60m release clause that is understood to expire on Friday.
There is a clear appreciation for Szoboszlai's talent and attitude as well as the Hungarian's comfort in playing across the midfield. His impressive chance-creation metrics and ball-carrying ability also fit the profile Liverpool are after.
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The club had also been exploring multiple options as they look to enhance the technical quality, dynamism and depth in midfield.
Inter Milan midfielder Nicolo Barella is also a target, but he is leaning towards staying at the San Siro amid strong interest from a number of Premier League clubs. One source has told Sky Sports News Barella wants to become a legend at Inter.
Background work has also been done on Bayern Munich's Ryan Gravenberch and Khephren Thuram of Nice.
Liverpool are navigating the biggest shake-up of Jurgen Klopp's tenure at a time when the market - especially for midfielders - is severely inflated, and without Champions League revenue or a big player sale to help.
Affordability, availability and the appetite to restore Liverpool as a domestic and European force are the core factors being assessed.
The Reds secured Alexis Mac Allister at the start of June for an initial fee of around £35m in the type of shrewd transfer that had marked them out as recruitment leaders.
However, that deal is viewed as an anomaly rather than the norm during a summer of soaring valuations.
Szoboszlai the value pick in sellers' market
Sky Sports' Ben Grounds:
"In a summer that has seen Jude Bellingham become the most expensive British footballer of all time, Declan Rice command a fee north of £100m and Mason Mount worth upwards of £55m, Liverpool are looking for bargains.
"The early arrival of World Cup winner Alexis Mac Allister fits the player profile Jurgen Klopp is identifying at the age of 24.
"Dominik Szoboszlai is of the same mould. Still only 22, the Hungary captain is ripe for further improvement.
"A recent appearance against Montenegro in a European Qualifier ended goalless and largely forgettable, but it was punctuated by Szoboszlai's superior quality.
"Comfortable in the tight spaces of that pitch in Podgorica, the Premier League could be his next destination.
"The player's £60m release clause expires on Friday, and RB Leipzig are braced for a potential surge of late interest.
"Szoboszlai scored 10 goals, registered 13 assists last season and is ready to leave the Bundesliga side. Victory in the DFB-Pokal Cup over Eintracht Frankfurt felt a fitting end.
"Liverpool will look to use Leipzig's interest in Fabio Carvalho as leverage but talks on that deal for the 20-year-old have been conducted separately.
"Szoboszlai could well prove the value pick in a sellers' market."
What would Szoboszlai bring?
European football expert Andy Brassell on The Transfer Show:
"Szoboszlai is a very good player, he is Premier League ready. He goes box-to-box, gets through tonnes of work, he's an incredible athlete, great technique, loves a shot from outside the box, can score goals and create goals, and loves to take responsibility in taking a team forward.
"Both clubs that have been linked with him, Newcastle and Liverpool, are good fits for him. If you look at how athletic Newcastle have become under Eddie Howe, he will add something. Liverpool were lacking dynamism in midfield last season, and he would improve them too."
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