Liverpool's hopes of keeping Javier Mascherano took a blow last night as it emerged his agent had held talks with Barcelona.

According to an English tabloid Barca manager Pep Guardiola is willing to pay US$32.7 million.

Full-back Alvaro Arbeloa could also be on his way to Spain as Real Madrid are closing in on an US$13M deal.

Losing Arbeloa, 26, would not be a disaster for Spaniard coach Rafa Benitez as he has already signed Glen Johnson from Ports-mouth for US$29.4M.

In spite of the rumours, Benítez has always insisted that mid-center Mascherano, 25, is not for sale as the Argentine ace has cemented a reputation as one of the best holding midfielders in the country.