Rafael Benitez will raid the Anfield war chest to strengthen his ailing squad in January.
The Liverpool manager revealed last week that he still has over £20million to spend after clearing the decks by selling unwanted players during the summer.
The Spaniard's priority is a defender after injury to Daniel Agger and the loss of form of full-backs Steve Finnan and John Arne Riise.
Chief target is Paris St Germain full-back Bernard Mendy, who has been made available and will be sold in January - with Inter Milan, Juventus, Tottenham and Manchester City also interested.
The France international has six months remaining on his contract, and has refused all offers of a new deal, leaving PSG with no option but to try to get as much cash as they can for him.
Mendy, 26, who has been watched all season by Benitez's spies, will cost around £3m, and has already made it clear he wants to leave PSG.
Benitez is still keen on Roma's Amantino Mancini, despite having an offer for the right-sided midfielder rejected in the summer.
The Brazil international has since fallen out with Roma coach Luciano Spalleti in spectacular style and his agent, Gilar Veloz, has been instructed to find him a new club during the transfer window.
Liverpool will face competition from Lyon for Mancini - but they can offer bigger wages. Benitez will be prepared to pay around £8m to land the 27-year old South American.
Scouts from Anfield were at Heerenveen at the weekend to watch Brazilian striker Afonso Alves rattle in an incredible seven goals to set a scoring record in the Dutch League.
The Brazil international was top scorer in Holland last season with 34 goals, but when he demanded a move Heerenveen priced him out of the market at £12m.
Benitez knows Peter Crouch could leave in January and will seek to replace him with Alves.
Liverpool are also keeping tabs on Monaco's attacking midfielder Jeremy Menez, who has taken the French league by storm since arriving as an exciting teenage prospect. Now 20, he has been dubbed the 'new Zidane', and Liverpool know that Manchester United and Arsenal have also watched him closely, which could spark a major transfer scramble in the summer.
Benitez has been disappointed with the form of so many of his players and for the first time in his Anfield reign he has been openly critical of his team.
He knows that he still needs more quality and that is why his scouts have been working overtime across Europe.
