Liverpool have told Andy Carroll that he must leave the club or remain on the substitutes' bench until the January transfer window, according to The Daily Mirror.
The Reds are reportedly adamant that they will not be backed into a corner on deadline day and made to sell at a knock-down price and instead want the England striker's future resolved by the end of this week.
Liverpool are rumoured to rate the forward at around £20 million but Newcastle are optimistic that Carroll's determination to seal a move back to his hometown team will give them the upper hand in negotiations.
|11/4||Liverpool are 11/4 with Bet365 to secure a top-four finish in the Premier League
The former Swansea boss would may keep Carroll as a back-up than lose over £20m on the striker the Reds signed in January 2011 but would cash in if he could afford an adequate replacement.
The likes of West Ham, Aston Villa and Fulham have all sounded out Liverpool about the possibility of signing Carroll, but he is believed to have rejected all of their advances in the hope of securing a move back to the Sports Direct Arena.
The Hammers' offer was to pay all of Carroll's £90,000-a-week wages with a guaranteed £18m move at the end of the season but Newcastle have only been prepared to pay a cut of his wages plus an £11m fee.
It has also been rumoured that Tottenham could join the chase for Carroll once the transfer of Luka Modric to Real Madrid has been finalised.