Premier League Rumour Mill: Liverpool offer £4.5m for unhappy Hammer Benayoun

And Kop striker Craig Bellamy may yet be used as part of a swap deal. Hammers chairman Eggert Magnusson has lost patience with Israeli midfielder Benayoun and withdrawn his offer of a new £13m five-year deal.

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Anfield manager Rafa Benitez plans to cash in on the rift - while also offloading misfit Bellamy. Benayoun is being punished for dithering over signing a new contract after the Reds' unsuccessful £3m bid last week.

He said: "I'm honoured a club like Liverpool is interested in me. I'm contracted to West Ham so we will have to see what happens." West Ham insist the player has not submitted a formal transfer request, although Benayoun's feelings have been made clear that he fancies a move to Anfield.

Benayoun, 27, is currently on holiday in his homeland and played an hour of a friendly between Israel and Real Madrid on Tuesday, which the Spanish champions won 8-0.

But West Ham have acted in his absence. The Sun reports they have shelved plans to reward the skilful winger by ripping up the remaining two years of his contract in return for five more years and a £10,000- a-week pay rise Magnusson's patience with Premier League players has worn thin following his dealings with Darren Bent last week.

The Charlton striker rejected a £17m move to West Ham at the last minute after lengthy talks. Benayoun must prove his commitment before Magnusson is prepared to revive the offer — but the midfielder is not due back until early next month.

The Hammers are also looking at PSV Eindhoven's Ivory Coast striker Arouna Kone, 23.

Aston Villa boss Martin O'Neill wants to buy England under Under-21 keeper Scott Carson from Liverpool for £3.5m.

O'Neill is desperate to land the rising star and is prepared to pay good money for a player Rafa Benitez is happy to ignore.

Carson was in great form at the European Under-21 Championship having spent the season on loan at relegated Charlton.

Villa need a keeper to challenge Thomas Sorensen and have been linked with Bolton's Jussi Jaakelainen as well as Celtic's Polish star Artur Boruc.

O'Neill would settle for a season-long loan deal but would prefer to buy the 21-year-old and Villa's offer would give the Reds clear profit on the player they bought from Leeds in 2004.

Villa are also ready to step up their pursuit of Chelsea winger Shaun Wright-Phillips.

O'Neill has been given the go-ahead to bid £10m for the England man as well as offer West Ham £8m for skipper Nigel Reo-Coker.

The Villa boss, who tried to get Wright-Phillips on loan last season, admitted: "Shaun according to his agents, would have come.

"We had a loan deal agreed with Chelsea but they decided not to go through with it."

Reading have opened talks with their England Under-21 striker Leroy Lita.

The 22-year-old has year left on his deal after signing from Bristol City in 2005 for £1m.

He hit 14 goals for the Royals last season as netted three times in the European Under-21 Championships.

It is likely he will be offered a four-year deal worth around £15,000 a week and Reading director of football Nicky Hammond said: "We've had conversations with him and hope to move forward very soon."

Meanwhile winger Seol Ki-Hyeon is on the verge of joining Fulham for £1m less than a year after joining Reading from Wolves.

Manager Steve Coppell is keen to offload the South Korean after he failed to impress in the top flight.

Fulham's swoop comes after they agreed a shirt sponsorship deal with Korean electronics firm LG

Seol, 28, has 65 caps and played in the last two World Cups but managed just four Premiership goals last season.

Derby, Sunderland and Everton will keep on eye on David Nugent next week as the England striker returns to Preston to discuss his future.

Nugent has one year left on his contract but is almost certain to quit Deepdale for around £7m.

Curtis Davies has told West Brom he wants Premier League football - and both Spurs and Portsmouth will be in the hunt for the £10m-rated defender.

Although Baggies boss Tony Mowbray has rejected Davies' transfer request, he added: "I only want players here who want to play for the club but we won't just let players walk away."

Luke Young is at the centre of a tug of war between Bolton, Newcastle and Aston Villa.

The £3m-rated Charlton defender could be forced out of the Valley by France Under-21 skipper Yassin Moutaouakil who has just signed from Chateauroux for £400,000.

This will offer Young the chance of an immediate return to the top flight.