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Liverpool are close to agreeing a deal for Sporting Lisbon midfielder Joao Carlos Teixeira.

Talks are continuing between the two parties, with the latest bid understood to be £850,000 for a player who is yet to start a game for his current club.

The 19-year-old is out of contract in the summer and Sporting Lisbon are suffering financial problems.

When asked about a potential deal, Liverpool manager Kenny Dalglish said: "There might be something about that."

Teixeira, who has been compared to former Chelsea midfielder Deco, impressed while playing for Portuguese side Sporting Lisbon against Liverpool in a game - a tournament for a selection of youth teams from across Europe - in August 2010.

He has been interesting the Anfield club since scoring an impressive goal against them.

Liverpool are understood to be ahead of several top European clubs in the queue for Teixeira's signature. But Dalglish stressed the youngster would not initially be a contender for a first-team squad place, saying: "He's only a kid."

Daliglish also played down links with Ghana Under-20 midfielder Mumuni Abubakar.

After a recent trial with the club, Abubakar told Joy Sports in Ghana: "They were impressed by my performances during training and the match that I played. Liverpool is talking with my agent [Oliver Arthur] now."

But Dalglish denied any knowledge of a deal.

"It must be the academy," he said. "We are expecting a quiet [transfer] window. Obviously the academy aren't but we are."