Liverpool are steeling themselves for a transfer battle with Fiorentina over Palermo midfielder Josip Ilicic, with the Reds prepared to pay upwards of £12m for his services, according to Italian daily Gazzetta dello Sport.

Ilicic has been courted by Fiorentina this summer, but Liverpool's offer is understood to be two-and-a-half times greater than that La Viola were able to front.

The player himself is keen to move to Fiorentina, depsite the huge offer from England, and it remains to be seen if Palermo will yield to financial pressure.

Ilicic has spent nearly three years with Palermo so far, with his contract set to expire in 2016.

A decision on his future destination is expected within the next few days, while Fiorentina could even consider the possibility of bonus payments to sweeten the deal.

Plaermo was Ilicic's first club outside of Slovenia, having played for Interblock Ljubljana and NK Maribor before the move to Italy in 2010.

He is a full international with Slovenia, notching 22 caps since his debut three years ago.

Source: InsideFutbol