AC Milan have reportedly told Barcelona that they do not wish to exercise their £12.5m option to sign Spanish international Bojan Krkic.
The 22-year-old arrived at the San Siro in the summer having spent a season on loan at Roma. He went on to make 19 league appearances for the Rossoneri, although just five of them were starts.
According to Sky Sports News, Milan vice-president Adriano Galliani has told Blaugrana president Sandro Rosell that the club are not prepared to sign the striker permanently, which talkSPORT believes has put Newcastle United and Liverpool on red alert.
Arsenal and Tottenham Hotspur are also thought to be monitoring the situation.
Aged 17 years and 19 days, Bojan became the youngest player to have represented Barca when he came on to make his debut as a substitute against Osasuna in September 2007.
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