Chelsea are reportedly close to an agreement with Southampton over the signing of midfielder Romeo Lavia, as the Blues prepare to steal another midfielder from under Liverpool's nose.
The Reds have been long-term admirers of Lavia and have seen three bids rejected already this summer - with the latest worth £45 million.
Chelsea then entered the race earlier this week, submitting an offer worth a reported £48m, with Southampton holding firm in their £50m valuation of the player.
However, Sky Sports News have confirmed that the Blues remain in talks with the Championship side, and are close to an agreement for Lavia.
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The news will come as a major blow for Jurgen Klopp who was expected to return with an improved offer for the the 19-year-old as the two Premier League sides battle it out for his signature.
In the meantime, Liverpool and Chelsea have locked horns in the race to sign Brighton midfielder Moises Caicedo.
While the report has claimed that Chelsea would be keen to add both Caicedo and Lavia to their ranks this summer in an astonishing coup which would leave Liverpool high-and-dry in their search to replace Fabinho.
Following weeks of speculation, it looked like Caicedo's move to Liverpool was all but guaranteed after the Reds agreed a British record transfer fee of £111 million with Brighton for the Ecuador international.
However, recent reports have claimed Caicedo is having "second thoughts" on a move to Anfield, despite having a medical scheduled in Merseyside.
Explaining the situation earlier on Friday, transfer expert Fabrizio Romano tweeted: "Chelsea are NOT giving up on Moises Caicedo deal despite medical booked.
"And Chelsea have no intention to give up until contracts (already prepared by Liverpool and Brighton) are signed."
Joe Adams