Liverpool have identified on-loan Rayo Vallecano midfielder Saul Niguez as their latest January transfer target after scouts watched his display against Atletico Madrid.

The Spanish U21 international endured a torrid time in front of the Reds' scouts however, playing out of position at centre-half where he was booked and scored an own goal as he tried to keep Diego Costa under wraps.

Liverpool are believed to have met with Niguez's father last week, with Manchester United and Arsenal both tracking the 19-year-old, according to the Daily Mail.

Niguez, who is currently on loan at Rayo Vallecano from Valencia, has made 18 appearances in La Liga this season, getting sent off against Almeria in October and scoring once against Espanyol.

He has a buy-out clause in his Atletico contract, although Liverpool are said to be readying an £8m offer for the youngster which they hope will tempt the Spanish giants to sell this month.

Source: Metro