Benitez issues warning to Babel if winger decides to compete in Beijing

But less than six weeks since the injury, Babel has returned to full training with Liverpool at Melwood.

Back in training: Ryan Babel could now be called up for Holland at the Olympics.

And that means the Dutch will be able to immediately name him in their squad for the Beijing Olympics.

Benitez has already lost Lucas to the Brazil squad and Javier Mascherano as an over-age player with Argentina, who are also likely to call up Emiliano Insua.

Clubs are unable to stop under-23s from travelling to China, while Mascherano will go because he has expressed a desire to play for his country in the tournament.

And Benitez now cannot stop Babel's inclusion in Holland's squad to be confirmed in the next few days.

Benitez said: 'Obviously, we are really pleased that Ryan is coming back to training because he is an important player for us and he has worked hard to recover from the injury he suffered with Holland.

'But we are really worried because after getting him fit it is likely that we could lose him again if he is selected for the Olympics.

'This is a big problem - we prepare him and then he goes away with the national team.

'This season is very important for him. In his first season he was settling in but this time he has more experience and we are looking for him to give something from the beginning, so it is really important for him to start working with his team.'

Babel will miss both legs of the Champions League third qualifying-round tie early next month and the opening Premier League games with Sunderland and Middlesbrough.

And Benitez will be left fretting that he does not break down again and damage his barely-fit ankle.

He said: 'This has been a strange pre-season, because we have to wait for
players to return late following the Euro finals and then at the end of the preperation we are going to lose players to the Olympics.'

Benitez is expecting to complete the signing of Brazilian goalkeeper Diego Cavalieri for £3million after the Palmeiras player successfully passed a medical this week.

He will be the club's third summer signing, following full-backs Philipp Degen and Andrea Dossena.

Cavalieri's agent, Juninho Parmigian said: 'We will conclude everything soon. He has already had the necessary medical examinations, talked with some of his new team-mates and has been impressed by what Rafael Benitez had to say to him.'

Liverpool are expecting to recoup some of the fee by selling French keeper Charles Itandje to Galatasaray for £2million.

They will also now sell Scott Carson, with Stoke showing interest.

They will then try to finalise the move of Aston Villa's Gareth Barry to the club, possibly in time to figure in Saturday's opening friendly at Tranmere.

Villa are believed to have said they will accept £17million plus Irish full-back Steve Finnan, who they value at £1million. They also want the fee paid in two instalments, half now and the rest in 12 months.

The two sides now seem close enough for the summer-long saga to be concluded by
the weekend.