Italian newspaper Gazzetta dello Sport is reporting that Juventus and Liverpool have agreed a £12million fee for the Turin based club to sign Xabi Alonso this summer.

The paper reports that Juventus director Jean-Claude Blanc and Rafa Benitez met on Tuesday to discuss the deal, which would end Alonso’s four year spell at Anfield.

The 26-year-old Spanish international has been finding it increasingly hard to hold down a first team place since the arrival of Argentine Javier Mascherano at the club.

It is thought the Reds are set to sign Aston Villa’s Gareth Barry as Alonso’s replacement.

Meanwhile this morning’s English newspapers suggest that Roy Hodgson is interested in taking Steve Finnan back to Craven Cottage.

Finnan was signed by former Liverpool boss Gerard Houllier in the summer of 2003 from Fulham, but the imminent arrival of Swiss right-back Philipp Degen could see the Irish international leave.

Elsewhere, the Reds have today been linked with former French international goalkeeper Ulrich Rame.

The 35 year old currently plays fro Bordeaux and would replaces Charles Itandje as Liverpool’s second choice goalkeeper.

And Sebastian Leto could be used as part of a deal for Spanish winger Albert Riera, with negotiations thought to be ongoing between Liverpool and Espanyol.