ROY HODGSON admits Javier Mascherano’s head has been turned by the prospect of a move to Barcelona after watching Liverpool crash to their first defeat of his reign.

But the Liverpool manager has warned Mascherano could remain "unhappy for a long time to come" unless the Catalans increase their offer.

Mascherano was absent as goals from Gareth Barry, Micah Richards and a Carlos Tevez penalty sent Hodgson’s men tumbling to a 3-0 defeat at Manchester City last night.

Hodgson chose not to pick the wantaway Argentine after revealing the player’s "mind isn’t right" after being informed of an offer from Barcelona.

Reports in Spain yesterday suggested a representative of Mascherano had already agreed terms with the Catalan giants over a prospective move.

However, Hodgson insists Barcelona’s bid – believed to be £12million – is well short of Liverpool’s valuation of the Argentina international.

"Javier Mascherano is not in the right frame of mind at the moment to play a game because his head has been turned by the offer from Barcelona," said the Liverpool manager.

"The fee we are being offered and the fee we think is the correct fee are very, very far apart. Unless that can be resolved he might be unhappy for a long time to come.

"The discussions between Barcelona and the club are being held at high club level and as a result I don’t want to start saying things that may or may not be true.

"I have no wish to create headlines over the Mascherano situation.

"It’s not the first time these things happen and there are quite a lot of clubs suffering at the moment from players being courted by other clubs and the players therefore being unhappy at being required to fulfil their contracts. It has happened to us now.

"This matter has developed over the last couple of days. We have only known about it for the last three days."

Hodgson added: "Obviously there’s some speculation about his future and his mind isn’t right because of that so it wasn’t right to select him.

"But hopefully matters will be resolved before the end of the transfer window and I will have a chance to pick him again but tonight wouldn’t have been a good time to select him."

Although Hodgson claimed last week Inter Milan had informed they were no longer planning a move for Mascherano, the Italian side remain interested in a possible transfer.