Juventus have already signalled their interest in taking the midfielder on a season-long loan, and Hodgson believes such a move would be good for both the player and his club.

“Alberto might go out on loan, it’s being discussed,” said the Liverpool manager. “Last year he came here and hardly played and if he has another like that, his value will be vastly diminished, but most importantly he will be very unhappy.

“He came here to play every week as a very expensive signing, the first name on the teamsheet.

“But with Steven Gerrard, Javier Mascherano and Joe Cole, it’s going to be very hard for me to say ‘you’ll always be the first name on that team sheet,’ so of course he would then risk not getting enough games again.

“After last year when he came here injured and hardly played it would be a disaster for him to have two years of hardly any football.

“If he can get regular games for a top Italian Serie A team, it gives him the football he needs and protects the value of the player. But first we need to get him back to being the player he was when he came over a year ago. But we’re doing it with a view to bringing him back.”

Hodgson, meanwhile, has hinted Fernando Torres is in line for a start when Liverpool travel to Manchester City on Monday.

The Spaniard made his first appearance for the club since April as a late substitute against Arsenal on Sunday, and then played the entire second half on Thursday evening against Trabzonspor.

And Hodgson said: “He’s been ready to start all the games, it’s just a question of making sure we don’t rush things, and with David Ngog and Ryan Babel we don’t have to.”

Hodgson's squad restructuring took another step yesterday with Olympiakos moving to the brink of a move to sign Krisztian Nemeth for a fee of around £1m,

The 21-year-old Hungarian strike will pen a three-year deal, subject to a medical, with Liverpool receiving 25%of any future transfer fee. Nemeth will be reunited with Albert Riera, who moved from Anfield to Olympiakos last month.

Hodgson remains keen to strengthen his squad before the transfer window closes in 10 days, and is keeping tabs on PSV Eindhoven's Mexican international left-back Carlos Salcido.