LIVERPOOL have agreed terms with Portuguese superstar Luis Figo - but the deal is on ice because Real Madrid have suddenly demanded a £2m transfer fee.
Figo secured a verbal agreement with the Spanish giants saying he could leave on a free if he found the right club.
But having concluded negotiations with the Reds, the 32-year-old midfielder is now livid with Real's u-turn. They now want a fee for his services.
Liverpool won't proceed with the transfer if they have to pay the Spanish club.
As the Figo deal faces deadlock, Benitez is edging closer to securing the services of Southampton's Peter Crouch and Valencia's Mohammed Sissoko.
No fee has been agreed with the Saints, but it now seems only a matter of time before the young striker moves to Anfield in a deal worth around £6.5m.
Saints chairman Rupert Lowe is at loggerheads with his player and manager over the negotiations.
Redknapp is realistic about the situation, recognising Crouch has his heart set on the move. The St Mary's boss wants to get on with rebuilding his side with the kitty he'll get.
Lowe, however, continues to increase his valuation of the recently capped international, which has led to the stalemate.
However, Anfield sources say there could be progress on a Crouch deal over the next 24 hours.
In a frantic week off the park, Djimi Traore and Didi Hamann have today penned the deals agreed in the aftermath of the European Cup win.
And goalkeeper Pepe Reina is now free to make his debut at Wrexham on Saturday after receiving international clearance.
Liverpool are also making progress with negotiations regarding Jamie Carragher's future and expect the defender to sign his four-year-contract with skipper Steven Gerrard tomorrow.
"We're delighted to have secured Steven, Djimi and Didi, and now the future of Jamie is at the top of our minds," said chief executive Rick Parry today.
"We're very hopeful this will be sorted out very quickly."
Carragher, Gerrard and Traore will stay at the club until at least 2009, while Hamann has signed a one-year-deal.
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