Liverpool transfer news: Reds face Man City competition for €70m Argentine midfielder

Liverpool are 'closely following' Porto midfielder Alan Varela, with an eye on a possible summer move, according to a report.

The 22-year-old only moved to Portugal last summer, in an initial €8m (£6.5m) deal from Boca Juniors.

The Argentina youth international has become a key player under manager Sergio Conceiçao in his half-season in Europe and is already attracting interest from some of Europe's biggest clubs.

According to Bolavip, both Liverpool and Manchester City are looking at signing Varela in the summer transfer market, with the Reds, in particular, fans of the defensive midfielder since his time at Boca.

It is reported that Jurgen Klopp's side ran the rule over Varela before his move to Porto, while their interest remains.

Meanwhile, the report speculates that City see him as a backup for Rodri at the base of their midfield.

While either club might've landed a bargain with Varela last summer, that won't be the case this year. Bolavip claims that Porto will only sell their No. 22 for his contractual release clause, which is set at €70m (£60m).

It is noted that Boca Juniors stand to benefit hugely with a big-money transfer, having included a 20% sell-on clause in his move.

Whether Liverpool would be prepared to splash the cash on another midfielder, having spent £145m on an engine room makeover last year remains to be seen.

The lack of depth in defensive-minded options means the Reds could yet bring in another player in the summer, while Anfield Watch understands that Genoa's Denmark international Morten Frendrup is one player the club are monitoring.