Liverpool are hanging on the result of ongoing contract talks between Alex McLeish and Birmingham City as they seek a potential replacement for Rafael Benitez, according to The Mirror.

The Brum boss is said to be in the midst of negotiations with the club's owner, Carson Yeung, over a possible extension to his current deal which expires in 18 months' time.

Meanwhile, the high-ups at Anfield are allegedly keeping an eye out for developments at St Andrew's, given the precarious situation in which the current occupant of the Kop hotseat finds himself.

The Reds are sixth in the Premier League standings and, having exited the Champions League at the group stage, are on the back foot in the Europa League round of 16 after Thursday's 1-0 loss to Lille.

Thus, Benitez's future is looking more than a little fuzzy, with rumours abounding that he could be sacked - hefty pay-out and all - if he doesn't secure a top-four finish.

McLeish was linked to the Merseyside giants earlier in the month, with the club's American owners thought to be impressed by the Scot's efforts whilst working on a tight budget.

Birmingham presently sit eighth in the Premier League, five points behind Liverpool and boasting a game in hand.