Lee Bowyer fires in a shot at St Mary's (MikeHewitt/Allsport)

Liverpool boss Gerard Houllier hopes to pin down a deal this week for midfielder Bowyer, just as Venables sets about raising cash to try to avoid selling star defender Rio Ferdinand.

Reds assistant manager Phil Thompson today admitted that discussions for Bowyer are 'ongoing'.

Thompson told the Liverpool Echo: 'He is a player we have admired for some time. Nothing has been finalised at the moment but discussions are ongoing.'

Houllier's number two added: 'He has things in his game which we need and he can also weigh in with goals. He is a quality player.'

Venables, who flew in to Leeds yesterday afternoon for talks with coaches Brian Kidd and Eddie Gray, had said: 'I want to keep the best players - I want to keep Rio.'

However, he added: 'Clearly there is a situation where the club has to move some players on.'

Bowyer, who was found not guilty of assault in a retrial last year but fined four weeks' wages by the club for excessive drinking on the night of the incident, has made it plain that he will not sign a new deal at Elland Road.

Leeds are under growing pressure to accept a compromise figure as Bowyer has only a year left on his contract. Liverpool's opening bid fell well short of Leeds' initial demand of £15m. However, the Yorkshire club may now agree and the deal could be done by Friday.

The move would complete a hectic summer of transfer activity at Anfield, with Liverpool signing former French Under-20 midfielder Alou Diarra on a free transfer from Bayern Munich. Diarra has signed a five-year deal and is set to be joined at Anfield by compatriot Bruno Cheyrou in the next few days.

Houllier is also close to completing the capture of Senegalese World Cup stars El Hadji Diouf, from Lens, and Salif Diao, from Sedan, which will confirm the club's determination to land the Premiership title.

After a month of talks on Bowyer, they are likely to find little opposition from Venables to the move. The former England boss has said in the past: 'He's (Bowyer's) in the last-chance saloon. If partying, drinking and dancing is your thing then play your football over the park.

'Those seeking their fortune at the top levels have to be dedicated to diet and fitness. Footballers are the new rock stars and should not lay themselves open to criticism or abuse by going to places which attract attention.

'If there are certain places they cannot go, then clubs should inflict harsh penalties for ignoring it. You give up your rights to fall about in the street when you become a pro. You cannot let your guard drop in public.'

Bowyer's arrival would give Liverpool more threat from midfield, where a lack of goals has cost them in the past. Success at Anfield could also revive his England career.

But Leeds hope his departure will be even more significant, especially as chairman Peter Ridsdale has said they have to bring in £15m this summer.

If Bowyer is swiftly followed out of Leeds by other expensive players then it can only help in their battle to keep Ferdinand, with Manchester United waiting impatiently in the wings.

Ferdinand has been boxed into a corner by Venables stating that he wants the England World Cup star to stay and the club are in a position to stand by that pledge if they reduce their debts.

Leeds fans were given more hope that the defender will opt to remain at Elland Road when Ridsdale revealed that Ferdinand's agent, Pini Zahavi, had told him he was very impressed with the appointment of Venables as manager.

'I won't know Rio's views until I have spoken to him personally but his agent was extremely complimentary about Terry Venables and he also said he understood that Rio would be impressed,' said Ridsdale.

However, if the lure of the Champions League ultimately proves irresistible for Ferdinand, his only option would be to ask for a transfer.