Swansea boss Brendan Rodgers appears to be edging closer to filling Liverpool's managerial vacancy but reports he has agreed a three-year deal have been dismissed as premature.

The 39-year-old emerged yesterday as Fenway Sports Group's first choice to succeed Kenny Dalglish, having moved ahead of Wigan boss Roberto Martinez.

Reports began circulating late this afternoon that a three-year deal had been agreed but sources at Liverpool said this was "categorically untrue".

It seems inevitable, however, that the Northern Irishman will be installed at Anfield and most likely before the weekend.

The Reds will have to pay somewhere in the region of between £4m to £5m in compensation as part of the new contract Rodgers signed at the Liberty Stadium in February.