LIVERPOOL are set to offer Jermaine Pennant a new one-year extension to his contract – to prevent him leaving on a free transfer in the summer.

The move would safeguard Liverpool against a clause in the winger’s contract – that entitles him to an automatic 12-month extension if he plays 15 games this season – not being activated.

Pennant has only made four appearances during this campaign and hasn’t featured since the home league game with Portsmouth on October 29.

With Liverpool leading the Premier League there is little prospect of the 25-year-old making up the remaining quota of games towards the end of the season and Saturday’s third round win over Preston displayed Rafael Benitez’s intention to field strong sides in the FA Cup.

Although Pennant is clearly our of his manager’s plans, Liverpool are keen to recoup a fee for a player they signed for £6.7million in the summer of 2006, particularly as there is no shortage of interest in him.

Although AC Milan’s recent desire to sign him was on a free, Real Madrid were prepared to pay £3m for him before the deal collapsed over personal terms.

And there are a clutch of Premier League clubs willing to take a chance on the erratic Pennant, including Blackburn Rovers, Wigan Athletic and Tottenham Hotspur.

However, they are aware that Pennant’s lack of action means he is certain to be a free agent at the end of the season, which has prompted Liverpool to draw up new terms for him.

Benitez, meanwhile, is preparing his team for the trip to Stoke City tomorrow, with Xabi Alonso the main injury concern following the foot injury he sustained at Preston.