Liverpool are set to cancel Nuri Sahin's season-long loan deal as they look to free up the wage bill.
The Turkish international is at the club on loan from Real Madrid, but has failed to impress, making just seven appearances in the league and scoring one goal. Sahin was not even in the squad for the FA Cup third round victory over Mansfield at the weekend.
While Liverpool are free to cancel the deal this month, it is understood they will only do so with the agreement of both Real Madrid and Sahin himself.
Real Madrid are not eager to have Sahin back, but have grown frustrated at his lack of playing time at Anfield.
It is possible that the 24-year-old go on loan to Inter Milan or Borussia Dortmund who are both interested in bringing the player in during the current transfer window.
Dortmund's director of sport Michael Zorc said recently the Bundesliga club, with whom Sahin played before joining Real, were monitoring the situation.
"Of course we are following Nuri's career - he's one of our lads," Zorc told the Bild newspaper.
"We said to him back then (when he left), if Nuri says that he wants nothing other than to play in Dortmund, then we will deal with the issue.
"But it has got to be manageable, and nothing has changed in that regard."
Inter are also reportedly keen to strike a deal with Real over a possible loan for the rest of the season, although that could be dependent on Wesley Sneijder exiting the club.