Swansea are the favourites to sign Jonjo Shelvey after Liverpool received two offers for the £5 million-rated midfielder.
Crystal Palace are also keen to recruit the England international but the Liberty Stadium is a likelier destination for the 21-year-old.
Capital One Cup winners Swansea have established themselves as a mid-table Premier League side, will play in Europe next season and could be a more attractive proposition to Shelvey, a source said.
While Palace had also been linked with a loan move for the Londoner, Liverpool will only let Shelvey leave on a permanent transfer.
It is thought that Shelvey would be willing to bring his three-year stay at Anfield to an end to increase his chances of playing first-team football.
Shelvey, a £1.7 million signing from Charlton in 2010, has scored seven goals in 69 games for Liverpool and became a regular in the opening months of last season.
But he dropped down the pecking order thereafter and Liverpool will countenance a sale to raise money for Brendan Rodgers’ transfer budget.
Norwich and West Ham were also linked with Shelvey, who made his England debut against San Marino in October 2012, but now Swansea and Palace are competing for his signature.
Swansea have already re-signed Jonathan de Guzman on loan and are trying to bring in Lyon’s Bafetimbi Gomes while Vitesse Arnhem’s Wilfried Bony is a reported target.