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Liverpool FC have agreed a deal in principle to sign Benfica defender Lorenzo Melgarejo on loan.

The Paraguayan left-back will move to Anfield on a season-long deal, subject to a work permit application being accepted.

The Reds will have the option to make the move permanent for a fee of around £7m next summer, should the move develop into a success.

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Liverpool were informed of Melgarejo’s availability after Benfica moved to sign two left-backs, Silvio and Bruno Cortez, on loan last month.

The 22-year-old featured as the Portuguese outfit made their way to the Europa League final last season, eventually losing out to Chelsea, and can play as a wide midfielder as well as a full back.

Reds boss Brendan Rodgers remains keen to add a central defender to his squad.

He retains an interest in Schalke centre-back Kyriakos Papadopoulos, but the clubs remain some way apart in their respective valuations of the Greek international, despite reports to the contrary.

Meanwhile, Jay Spearing is expected to make a decision this week over his proposed £1.75m move to Blackburn Rovers.

A deal has been agreed with the SkyBet Championship side for the midfielder but Spearing, who was part of the Reds squad for the tour of Indonesia, Australia and Thailand earlier this month, is yet to decide whether he is willing to move to Ewood Park.

Bolton Wanderers, who had the 24-year-old on loan for the whole of last season, are also interested, though are unlikely to match Blackburn’s bid.

Spearing, who has been told his first-team chances will be severely limited at Anfield this season, would ideally like to secure a move to another Premier League club.