Liverpool manager Brendan Rodgers has confirmed talks are taking place with Cardiff City regarding a deal for Craig Bellamy.
Sky Sports revealed earlier this week that Cardiff are in pole position to sign the 33-year-old after Liverpool reluctantly agreed to let Bellamy move on.
Bellamy is understood to want to return to South Wales for personal reasons and the Reds are willing to let the versatile attacker head back to Cardiff for free.
The Wales international has refused to comment on reports that he could rejoin his hometown club and says that he is taking his future 'day by day'.
However, he now appears to be closing in on a move to Malky Mackay's side after Rodgers revealed that discussions between the two clubs are ongoing.
"We have been in talks with him and Cardiff," said Rodgers.
"I had a really good meeting with Craig before I moved up here.
"He is a big Liverpool supporter but I also understand his thinking.
"He is 33 and has travelled around the country all his life, so there are compassionate reasons.
"We will look at it but we will wish him all the best and move forward."
Bellamy spent the 2010/11 season on loan at Cardiff and he scored 11 goals in the Championship before returning for a second spell at Liverpool last summer.