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Liverpool are on the brink of sealing a club record £26.5m deal to sign Atletico Madrid's Fernando Torres.

BBC Sport understands a transfer has now been agreed between Liverpool and Atletico, and only a late change of heart in Spain will scupper the deal.

Liverpool's Luis Garcia is likely to go in the opposite direction for £4.5m, but the Torres deal will not collapse if he rejects the switch.

Boss Rafa Benitez is being linked with Manchester United's Gabriel Heinze.

Argentine defender Heinze is currently playing in the Copa America, but there is growing speculation Liverpool will try to do a deal for the 29-year-old.

It may prove complicated, however, with fierce rivals Liverpool and United notoriously reluctant to sell players to each other.

Torres is Liverpool's main priority, and there is hope that he could put pen to paper within the next few days.

Liverpool officials are playing their cards close to their chest on what will be a move that shatters their previous club record deal, the £14m paid to Auxerre for Djibril Cisse three seasons ago.

But it is understood the framework of the Torres move is finally in place between the two clubs after lengthy and complicated negotiations - although Liverpool remain cautious until it is actually signed and sealed.

Liverpool's approach is understandable given that Torres has reportedly been leaving Atletico for several seasons, only for moves to fall at the final hurdle.

Spanish international Garcia is expected to sign for Atletico, but if he remains at Anfield, Liverpool's new owners George Gillett and Tom Hicks will pay straight cash for Torres.

Torres, 23, is currently on holiday until early July, but Benitez remains hopeful of confirming the deal then, with personal terms not expected to be a problem.

Atletico fans held a protest at the possible deal, and a club spokesman has tried to cool suggestions that move is now imminent.

The spokesman said: "The player is on holiday at the moment and will report back to training on 9 July for an Intertoto match.

"At the moment, any talk of a move is just speculation and we are still hopeful that Fernando will be with us next season."

Atletico are reluctant to sell, but Torres is believed to be keen to link up with Benitez.

Benitez wants to land Torres to provide a spearhead for an assault on the title - and also allow Gillett and Hicks to demonstrate their own financial commitment to his plans.

Torres has been consistently linked with a move to England, particularly with Arsenal and Chelsea, but Liverpool are now set to win the race.

If he signs, he will join fellow countrymen Garcia, Pepe Reina and Xabi Alonso, as well as boss Benitez.

Gil Marin, Atletico's major shareholder insisted that Torres is not irreplaceable.

"Nobody is indispensable. No player by himself, very good though he is, is able to make a team achieve its aims," Gil Marin said on Punto Radio.

"We have spoken to him and told him we would like him to stay. It is normal that he has doubts. It is normal that the offers and everything surrounding them has made him think."

Torres, 23, scored 14 league goals in 36 starts this season as Atletico finished seventh in La Liga.

The Spain international's Atletico contract runs until 2009.

Torres came up though the youth ranks at Atletico and has been their leading scorer in each of the last five seasons.

Also, Sky Sports News are saying that Fulham have agreed to sign Diamansay Kamara from West Brom for 6.5mil

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.. Does Manchester City even have enough transfer money to meet Liverpool's reported price?

That just doesn't seem right at all and i'd be shocked if Torres moved to them over Liverpool. Especially since Liverpool is his favourite club in England or so i heard.

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City have now got the Thai's blood money behind them, so they've got enough money.

Edit:

Pacheco, one of the pearls of the youth team, 'flees' to Liverpool

The never ending story. England has set it's sights yet another one of the emerging figures in the blaugrana youth setup and, this time, they've managed to pry it away from Barça. In this occasion, the 'robbery' has been committed by Liverpool, who have taken Daniel Pacheco with them, central forward of the U-16 team.

The young player, who, despite having just turned 16 this past January, has already been used regularly for Alex Garcia for the U-18A, has decided to accept the 'Reds' offer to play in England for the next 3 seasons. Although Barça has tried to keep the player under it's wing, the agreement between the English club and the player is irreversible.

Garcia Pimienta, his manager at the U-16A's this season, considers that he is "a big loss for the club because we're talking about a striker with lots of quality and a goalscorer. He's been our top goalscorer, reaching almost 30 goals and he's already played with the U-18A's, so i don't think this is a sporting issue, because he is highly valued at the club". The coach considers that "along with Thiago Alcantara and Gai Assulin he is one of the U-16 players with best prospects that we have, but there is nothing we can do now. It all happen very fast".

Dani Pacheco arrived in Barcelona from his native Malaga and has spent the last four years at the club. Now, like Cesc, Pique or Fran Merida before him, he's gone to England.

Edited by therockbox
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I'm sitting on the fence when it comes to Torres. I've seen some of his work in Spain and he has fantastic ability, but Spanish-speaking strikers have historically found it hard to play as well in England as they did in their homeland and I'm not sure the gamble's going to pay off. I'm willing to give him a chance, but I'm frowning at the 26.5m price-tag, I hope he can show us he's worth it.

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Morientes never got the opportunity at Liverpool to be fair. Plus, when he came in, he was a Real Madrid reserve in all respects. Torres comes into the Liverpool squad as a starter. He's a starting man for Athletico. Whether he can adapt or not is a matter to decide later. All I'm saying now is that he has a far better chance than Morientes did at being a success.

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I'm willing to bet Liverpool will give Torres a few seasons of first team play (or atleast rotation) even if he doesn't live up to expectations you only have to look at Drogba to see it is still possible he could be a quality player in the future. Could take him time to adapt and i think Liverpool would give him that time considering the money they spent on him. They would be stupid not to.

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Lately here in Portugal there's been some talking about Liverpool's interest in Miguel Veloso, and there are even some sites and newspapers that are saying that Liverpool is ready to offer the 30M€ of his release clause, since Sporting has no interest in selling the player.

I doubt Liverpool will advance with the offer, but please don't take him <_<.

Edited by PDG
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