Birmingham City boss Alex McLeish is being linked with Rafa Benitez's job at Liverpool.
The Sun says calls for Anfield legend Kenny Dalglish to step in as an emergency caretaker intensified yesterday.
Owners Tom Hicks and George Gillett must re- finance the debt they accrued buying Liverpool so cannot promise a huge transfer kitty for any new boss.
They believe Birmingham manager McLeish would be the ideal manager to get the best out of the current squad and operate within a limited budget.
The Scot has 18 months left on his Brum deal, worth around £800,000 a year.
Liverpool believe they would have to pay around £1million compensation to get their man now but a lot less if they wait until the summer.