Liverpool Transfer News: Latest Rumours and Speculation on Boxing Day 2014

Liverpool manager Brendan Rodgers is ready to step up his efforts to fix the club's dire striker situation.

Rodgers will target three forwards, including Real Madrid's prolific ace Karim Benzema,

But the Anfield boss will also cross the divide in La Liga to try and snap up a bright young prospect from Los Blancos' hated rivals, Barcelona. However, that won't be the end of Rodgers' plans.

The Anfield chief also has one eye next season. With that in mind, he'll reportedly battle Arsenal for the right to sign James Milner on a free transfer next summer.

But it's the striker search that's likely occupying the minds of most Liverpool fans at the moment. That's a great place to start with the latest round of transfer speculation:

Reds Readying Massive Bid for Benzema

Landing Benzema would certainly be the dream scenario for Liverpool and its supporters in the January window. To that end, the Reds are apparently putting together a monster bid for the French striker.

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That's according to Daily Express writer Joe Short:

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Up front, hope of landing former Anfield ace Fernando Torres has died, as has any lingering prospect of Lyon's Alexandre Lacazette moving to Merseyside. But the Reds are preparing a shock £50m bid for Karim Benzema of Real Madrid, while CSKA's Seydou Doumbia would be a cheaper option at £20m.

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Frankly, Liverpool landing Benzema seems beyond fanciful. It's practically unfathomable that the 27-year-old would leave Madrid for Anfield. Benzema would be turning his back on the 10-time European champions for a club that, at this point, is facing an uphill battle to return to the Champions League next season.

It's not as if Benzema is even a marginal figure in the Spanish capital. He's made 22 appearances in all competitions this season, scoring 14 goals in the process, per WhoScored.com.

Rodgers' interest is obvious. Back in early October, Daily Star reporter Chisanga Malata suggested Rodgers was ready to meet Los Merengues' £38.8 million valuation for the France international.

However, this one seems unlikely to actually materialise. It's telling that Short also included Seydou Doumbia as a "cheaper option." Certainly, the CSKA Moscow powerhouse is a more realistic target for the Reds.

In November, Liverpool were linked with a possible £15 million bid by Mirror writers Tom Hopkinson and Dean Jones. The 26-year-old Ivory Coast international certainly merits an investment around the £15-20 million mark.

Doumbia is quick, powerful and has an excellent instinct for seizing on chances. His quality in front of goal is exceptional. Doumbia has developed into a cool customer who calmly slots away his chances.

However, it remains to be seen how successfully a player as robust as Doumbia would adapt to Rodgers' brand of stylish short passing and fluid movement. That's the type of game a natural technician such as Alexandre Lacazette would be better suited to.

Short sounded the death knell for Liverpool's hopes of wrapping up a deal for the mercurial French attacker. That's probably in reference to Lyon owner Jean-Michel Aulas recently declaring his intention not to sell the gifted 23-year-old, per L'Equipe (h/t Daily Mirror reporter Jack Lang).

However, if Aulas could be tempted into a sale, ex-Liverpool loanee Aly Cissokho believes Lacazette would flourish abroad.

The one-time Lyon ace and current Aston Villa left-back stated his belief to footmercato.net (h/t ESPN FC writer Ian Holyman):

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He was serious in his work, and showed his determination in each session. He steadily grew in confidence, and has established himself in the team. I think he's starting to show his potential to the whole of Europe. He has quality, and is going to get better and better.

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Lacazette certainly represents the kind of lightning-fast and creative forward Rodgers covets. If he's going to spend big this January, the Merseyside gaffer shouldn't waste his time trying to tempt Benzema.

Instead, he should focus his resources on convincing Lyon to give up Lacazette.

Rodgers Makes Inquiry for Barca Product

While his squad needs established talent, Rodgers doesn't have to give up on securing promising young players for the future. Currently that means pursuing a potential deal for Barcelona teenager Adama Traore.

That's according to Catalan publication Sport (h/t Squawka writer Ibrahim Akkas):

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Traore, 18, is highly-rated at Barcelona and is expected to have a big future at the Camp Nou. The Barcelona star can play on either wing but prefers to play on the right-hand side.

According to reports in Spain, Liverpool have made a formal enquiry for the Barcelona youngster. However, it is expected that the player’s future will be decided at the end of the season in June.

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Akkas has also stated that a loan deal is the most likely option for the Reds, at least the option Barca find most agreeable. Yet Rodgers may first have to ward off competition from Premier league rivals, including neighbours Everton.

The Toffees have been tipped to win any race to sign Traore, according to Spanish source Fichajes.net (h/t Metro reporter Jamie Sanderson). However, Rodgers could be tempted to press forward for a deal.

Traore certainly has the versatility Rodgers craves in attack. Having been schooled at Barca's rightly famed La Masia academy, Traore is blessed with technical proficiency and confidence in possession.

Those qualities certainly suit Liverpool's style of play. But the club is hardly short of advanced playmakers.

Rodgers' squad already boasts Adam Lallana, Philippe Coutinho and Lazar Markovic. Rodgers should avoid falling into the trap of stockpiling one type of player. A dangerously unbalanced squad will result from that recruitment policy.

Liverpool Face Arsenal Fight for Freebie Milner

Liverpool could sign Milner for nothing at the end of this season. Of course, that's assuming Rodgers can beat Gunners boss Arsene Wenger to the Manchester City squad player's signature.

Currently it's Liverpool who appear keener, per Daily Express reporter Richard Tanner:

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The Reds are monitoring Milner's protracted contract negotiations at City and if the talks show any sign of breaking down the Merseyside club are ready to move to snap up the England international.

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This potential deal is an interesting one. Although Milner certainly lacks star power, he's a tireless midfield workhorse.

The 28-year-old's energy, smarts and industry would make a difference for Arsenal and Liverpool. Both teams lack true drive and graft in the middle.

The pair were both linked with a £10 million move for Milner this summer, per Daniel Taylor of the Guardian. The fate of both clubs in the race for this season's Champions League places could well decide Milner's destination next summer.

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But it's not Milner's decision that will play heavily on the minds of Liverpool fans during the winter window. Their main focus will likely still be the club's bid to reinforce its options at striker.

Greater firepower remains the key to a revival of Liverpool's tough season.