Liverpool set to miss out on Manuel Ugarte with PSG 'ready to pay his release clause'

Liverpool have been dealt a significant blow in their pursuit of Manuel Ugarte following reports that Paris Saint-Germain are closing in on a deal for the midfielder.

Ugarte has been one of several names rumoured with a move to Anfield this summer, as Jurgen Klopp eyes a major overhaul to his squad.

The club confirmed that James Milner, Naby Keita, Oxlade Chamberlain, Arthur Melo and Roberto Firmino would all leave the club at the end of the season, paving the way for new recruits.

Earlier this week, Portuguese outlet Record claimed Anfield chiefs were braced for talks with Ugarte, who could act as a cheaper alternative to the Reds' other midfield targets.

However, Paris Saint-German have reportedly arrived on the scene and are "expected" to land the 22-year-old's signature this summer.

Ugarte to PSG?

According to French news outlet L'Equipe, PSG's football director Luis Campos is looking to strengthen his midfield this summer and has identified Ugarte as a "key target".

The report adds that negotiations are at an "advanced stage", and despite interest from Liverpool and Arsenal, the French capital is thought to be his "preferred destination".

PSG are also allegedly willing to meet Sporting Lisbon's release clause of €60 million, although a separate report from Sports Zone claim that Campos is trying to negotiate a lower fee.

Liverpool, meanwhile, are closing in on a deal for Brighton midfielder Alexis Mac Allister, who has impressed on the south coast this season.

Having pulled out of the race for Borussia Dortmund midfielder Jude Bellingham, Mac Allister has surfaced as the Merseyside club's priority target.

Providing an update on the situation, transfer expert Fabrizio Romano tweeted: "Liverpool are close to full agreement on personal terms with the player, waiting on final details."