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Liverpool must overcome competition from Inter Milan and Boca Juniors if they wish to sign Real Madrid midfielder Fernando Gago.
Spanish newspaper Marca has claimed the Merseyside club are interested in the Argentina midfielder, who is deemed surplus to requirements at the Bernabeu.
Real signed Gago in 2007 and he was considered one of the biggest young talents in world football after he became an instrumental part of Boca's midfield.
However, the Spanish giants boast a wealth of top-class midfielders with Sami Khedira, Xabi Alonso, Mesut Ozil and Kaka all above him in the pecking order.
This summer, manager Jose Mourinho has already brought in Hamit Altintop and Nuri Sahin which makes Gago's exit from Real appear imminent.
Liverpool have reportedly registered their interest in the combative midfielder but it is thought they must offload some of their fringe players before they can make a deal happen.
Reds boss Kenny Dalglish has already recruited Jordan Henderson, Stewart Downing and Charlie Adam to bolster the squad's midfield. To bring in Gago it is expected one or more of Joe Cole, Christian Poulsen and Alberto Aquilani will have to leave.
Italian giants Inter are also interested in Gago while Boca, who are thought to be the player's preferred choice, may struggle to meet the £7m asking price.
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