Liverpool in talks with AC Milan over Mario Balotelli

On Wednesday it was reported by Italian news outlet Sport Mediaset that Liverpool boss Brendan Rodgers had tabled a €22 million (£17.5m) offer for the controversial striker, who spent three years with Premier League outfit Manchester City.

Despite much speculation linking the striker with a move to Merseyside, AC Milan chief Adriano Galliani had stated that no official bid had been received, saying: "At the moment we have not received any offer from Liverpool for Balotelli. The transfer window is open until September 1."

However, Milan Channel - the Italian club's in-house TV station - confirmed on Thursday morning that talks are now ongoing with Liverpool regarding the "outright sale of Mario Balotelli".

Just last month Rodgers said that the Reds would categorically not be signing the errant Italian, but he has now had a change of heart as Liverpool go in search for a much-needed striker following the departure of talisman Luis Suarez, with things moving on considerably on Wednesday night.

It appears Liverpool may have some stiff competition to sign Balotelli, with Italian newspaper La Gazzetta dello Sport claiming Arsenal and Chelsea should not be excluded in the battle to sign the 24-year-old.

The newspaper claims that Liverpool initially wanted to bring Balotelli in on loan, but the Serie A outfit will only let the striker leave on a permanent deal, which has put both the Gunners and the Blues on alert.

However, Liverpool could be at the front of the queue with reports they are meeting with Balotelli's agent, Mino Raiola, for talks in London.