Liverpool's hopes of signing Hakan Yakin from Basle look to be over with the player set to move to Atletico Madrid.
Yakin (right) helped knock Liverpool out of the Champions League
Switzerland international Yakin was part of the Basle team which played a big part in Liverpool's exit from the Champions League last season at the first group stage.
Basle twice drew with the Anfield side with attacking midfielder Yakin catching the eye and he was rumoured to be one of Reds boss Gerard Houllier's targets.
But the player's agent, Ertan Irizik, said: "We have agreed contract terms with Atletico for Hakan and expect the deal to go through this week."
Houllier has been linked with several players and Sporting Lisbon's Cristiano Ronaldo is the latest to enter the fray.
Ronaldo was impressive and scored when the Portugal Under-21 team beat England 4-2 in a European Championship qualifier.
Liverpool could also face competition from Aston Villa in trying to sign Jean-Alain Boumsong from Auxerre.