Liverpool manager Rafa Benitez is preparing to re-shape his squad in the summer but budget constraints means it could be a case of one in and one out.

The first high-profile player expected to head through the Anfield exit is Ryan Babel, at least according to The Sun, as the Reds boss looks to boost his summer transfer kitty. The Dutch international, who joined Liverpool for £11.5m from Ajax two years ago, is on wages of around £60,000 a week and has hardly played this season.

The Daily Telegraph claim Rafa is set to spend any spondoolics he raises on a cut-price bid for England U21 defender David Wheater after his club, Middlesbrough, were relegated from the Premier League.

Benitez tried to sign the centre-back last summer and enquired about his availability in January. The only sticking point for Liverpool would be the defender’s asking price. Birmingham were last week quoted £9m for the player.

If Liverpool want to make more funds available then they may well be able to offload Xabi Alonso to Chelsea as manager-in-waiting Carlo Ancelotti has told Blues owner Roman Abramovich, via the Daily Mail, that he wants to sign the Spaniard, along with Bayern Munich's Franck Ribery.

The Guardian reveal that Ancelotti actual met with Abramovich last year when the Russian billionaire pursued him across Europe following the Champions League final defeat to Manchester United.

"Abramovich wanted to know everything about me, my way of working, my philosophy," Ancelotti wrote in his serialised autobiography. "He was and still is looking for a team with a precise identity. 'Like Manchester United, Liverpool, Milan, certainly not like my Chelsea.'"

In more Chelsea related news the Daily Mirror report that Inter Milan coach Jose Mourinho is ready to raid his former club to land defender Ricardo Carvalho and midfielder Deco.

Mourinho wants to sign the fellow Portuguese pair from his old club in a £12m deal.

Meanwhile, Arsenal striker Emmanuel Adebayor, who has been strongly linked with a move abroad this summer, has told the Daily Express that he is happy to stay at the Emirates.

"All I can say is I am a footballer and if a club like Milan are interested in me then I cannot lie to you, I am happy, because it is Milan," said Adebayor. "But the thing is that it stops there - I am very happy playing for Arsenal, and this is what I always say."

And finally... Wigan Athletic manager Steve Bruce has indicated that he would be interested in discussing the vacancy at Sunderland, according to The Times.