Liverpool Transfer News: Latest on Paulo Dybala, Raheem Sterling and More

Liverpool are coming into a January transfer window that's likely to have a great bearing on their prospects for the remainder of the 2014-15 campaign, with Palermo's Paulo Dybala allegedly topping their wish list.

The club also have a priority in ensuring Raheem Sterling pens a new deal at Anfield after rejecting Liverpool's latest offer, while talk of Fernando Torres' potential return will cause mixed reaction.

Alessandro Fucarini/Associated Press

Dybala is being watched by a number of European sides hoping to take the South American wonder away from his Serie A setting, with Liverpool and Arsenal among that number, per the Mirror's Ed Malyon.

Malyon goes on to report the Italian outfit is doing all it can to sign the 21-year-old whiz on new terms, adding that his representatives demand a release clause be inserted:

With that, it would appear the Argentinian is at least interested in moving on from the Stadio Renzo Barbera in the future, which the Reds may seek to take advantage of.

Malyon says Palermo lost a court case relating to their 2011 signing of the forward, however, worth £5 million in payment to a third party. It means any transfer will now cost Liverpool that extra chunk, thought to be in the region of £30 million.

Tying down Sterling's services in the long term may be considered a simpler feat, but the winger's demands for a more lucrative deal are poorly timed given the club's recent disappointments.

Paul Hayward of The Telegraph writes that Sterling recently rejected the Reds' offer of £70,000-a-week, but Rodgers spoke to the media this week and is confident his youngster will remain on Merseyside for years to come:

Failing to sign highly coveted stars in the transfer market is one thing, but struggling to tie down the commitments of the talismanic figures already in-house is a cause for greater concern.

Should Sterling's contract disagreements drag on, it could threaten to have a negative impact on squad morale and doesn't give the fans a great boost in confidence, either.

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Another move not all supporters would agree with is a 2015 surge for former icon Torres. The striker is currently on loan at Milan from Chelsea but has struggled in Italy's top flight, leading to rumours of the Rossoneri ending his deal early.

Blues chief Jose Mourinho addressed the media this week, per ESPN's Miguel Delaney, to quash such rumours:

Bruce Archer of the Daily Star writes that if Milan were to cancel Torres' deal, Rodgers would be among those intrigued by the prospect of bringing the forward back to Anfield.

However, after seeing Mario Balotelli fail to impress since returning to England this past summer, the prospect of re-signing a Torres in decline strikes as another risky strategy.

Antonio Calanni/Associated Press

Granted, the absence of Daniel Sturridge has caused concern in Liverpool's attack, but the club purchased three strikers last summer, including Rickie Lambert and Divock Origi—on loan at Lille.

Torres may hold value as a Bosman, his wages not being accounted for, but irrespective of the talisman he may once have been for the Reds, he no longer presents the same allure to help the club's attacking woes.