Liverpool have launched a bid believed to be in excess of £21m for Atletico Madrid forward Diego Costa, but an agreement to sign the Brazilian international remains far from a done deal.

The 24-year-old has a release clause in his contract that Liverpool have reportedly activated, and they will now look to discuss personal terms with the 24-year-old.

Costa scored 20 goals in 44 matches last season, although eight of those came in the Spanish Cup competition and two in Europe.

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He only returned to Atletico last summer having spent the second half of the 2011/12 season on-loan at Rayo Vallecano. He had initially been purchased as back-up to Sergio Aguero and Diego Forlan back in 2010, but the additions of David Villa and Leo Baptistao has seen him fall down the pecking order at Estadio Vicente Calderon.

Reds’ manager Brendan Rodgers yesterday admitted that there was still enough money to spend on bringing in new faces to the squad although he would not be wasting it on unnecessary purchases.

"They have to be of the right quality, that's the bottom line," he told LFC TV.

"We've got money to spend on getting that quality in, but if it's not available I won't waste it for the sake of bringing a player in.

"We're really working hard to bring in the type of profile that can really help us push on."

Rodgers has already acquired the signings of goalkeeper Simon Mignolet, defender Kolo Toure and strikers Iago Aspas and Luis Alberto, but it seems he is not quite satisfied with the players available to him.

Liverpool officials see Costa as an addition to the strike-force and not a replacement for Luis Suarez, who continues to be linked with a move to Arsenal despite the Merseyside club’s insistence that he will not be sold.

Managing director Ian Ayre told Sky Sports yesterday: “It's not something we're interested in and, as our fans would expect, we rejected both.

"Despite what people think we've not had an intention of selling Luis, we've never said we want to sell Luis.

"The player is not available for sale - that's where we are and that's where we'll stay

"I wish I had £1 for everyone that's stopped me in the street saying 'make sure Luis stays'. That's what we're doing.

"I'll expect him to be here at the start of the season."

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