Liverpool have the upper hand to seal second signing of the summer for €40million

Liverpool reportedly have the upper hand in a deal to sign Otavio from Porto and it involves the Portuguese club wanting Marko Grujic.

This summer has already turned out to be an interesting one for the Reds even if it doesn't promise to be the most expensive one.

With Liverpool just about pulling off a third-place finish in the Premier League last season, it's important that they get their recruitment right and improve their squad as all their rivals are.

Georginio Wijnaldum has already sealed his departure from the club with a move to PSG as a free agent.

He needs to be replaced and there have already been so many names linked but Liverpool are taking their time to assess the market before making their move.

Rudy Galetti said recently that Renato Sanches and Otavio are targets for the Anfield side and now it appears they have the upper hand to complete what be a smart signing from sporting director Michael Edwards.

According to O Jogo, Liverpool are in contact with Porto after the Liga NOS outfit showed serious interest in signing Marko Grujic permanently following his loan spell in Portugal and it led to negotiations for Otavio.

Porto are desperate to keep Grujic but much like Liverpool, they are waiting to sell some of their players before signing anyone and with the likes of Hertha Berlin interested in the Serbian, Edwards is in a strong position during talks.

Yet, Porto want to keep him and don't want Grujic but they could lose out on the midfielder if they don't entertain Liverpool's interest in Otavio. €15m is Liverpool's asking price while Porto want €40m.

It's a very interesting transfer story and I have doubt over whether or not there is genuine interest from Liverpool as he doesn't seem like a player that would be willing to sit on the bench or someone that can come and make an immediate impact.

I would much prefer Renato Sanches and I'm sure the Portugal international would love the chance to return to the Premier League and show his worth after a failed loan spell at Swansea City.

He has all the tools required to succeed in Liverpool's engine room and would be the ideal replacement for Wijnaldum if Jurgen Klopp is looking for a like for like alternative and he'd cost just €40million [£34.3m].