Liverpool target Renato Sanches shows off skills on the pitch
Carlo Ancelotti has told Sanchez he is happy to let him leave Bayern Munich.
The Portugal international struggled to make an impression at the Allianz Arena in his debut season last year.
Sanches started just six Bundesliga matches with Arturo Vidal and Thiago the preferred partnership in midfield.
AC Milan were thought to be the frontrunners for his signature earlier in the summer but recently Liverpool have emerged as the favourites.
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Liverpool are clear favourites to sign Renato Sanches
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Jurgen Klopp is keen to do more business before the transfer window closes this week
Juventus were also rumoured to be interested in signing the 20-year-old.
But German publication Bild now claim Serie A is no longer an option for Sanches, leaving Liverpool in pole position to land the midfielder.
Sanches burst onto the world scene last summer with Portugal at Euro 2016.
He was a key part of the country lifting their first major trophy in their history and went on to win the Golden Boy award at the tournament.
Liverpool have already added Dominic Solanke, Mohamed Salah and Andy Robertson to their squad with this summer with a deal agreed with RB Leipzig to sign Naby Keita in 12 months time.
But Klopp is keen to do more business in the final days of the transfer window with Virgil van Dijk also heavily linked with a move to Anfield.
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