Liverpool have held initial talks with a view to signing Crystal Palace and England centre-back Marc Guehi this summer.

Palace captain Guehi has a year left on his contract, but chairman Steve Parish said earlier this week he could be sold to avoid him moving on a free transfer in 12 months.

Sources have told BBC Sport that Liverpool are looking to sign the 25-year-old before the summer transfer window shuts.

If the clubs do agree a deal for Guehi, the defender may need to be persuaded that a move to Anfield is the right one for him.

Aside from the financial element of his personal terms, the level of playing time he will be afforded will also be a factor.

The defender is a regular at Palace and, in a World Cup year, first-team football will be a crucial consideration for the centre-back.

Liverpool are also trying to sign 18-year-old Parma centre-back Giovanni Leoni.

The Italy Under-19 international is not seen as a potential rival for Guehi but more as one for the future.

He began his career at Padova and had a short spell at Sampdoria before joining Parma last summer.

Guehi has made more than 150 appearances for Palace since joining from Chelsea in 2021.

He won the first of his 23 England caps in 2022 and was part of the Three Lions squad that reached the Euro 2024 final.

Guehi was the subject of bids topping out at £65m from Newcastle last year.

FA Cup winners Palace are believed to want £40m for him now, given he only has 12 months left on his contract, but Liverpool want to pay less than that.

The Reds have already spent about £270m this summer, though they have recouped about £170m through player sales.

They have also had a £110m bid for Alexander Isak rejected by Newcastle, though sources have told BBC Sport the Swede remains determined to move to Anfield.

Signing Guehi and Isak would take Liverpool's summer spending above £400m.

'It's Liverpool or nothing for Guehi' - analysis

Ultimately, for Guehi, it is Liverpool or nothing this summer.

That isn't an ideal scenario for Crystal Palace, who were hoping for an auction. But the alternative is losing him for nothing next summer, when he may end up joining the Reds on a free transfer anyway.

While Palace ideally want £40m for Guehi, it may be that they get a deal worth around £35m plus add-ons.

The south London club have reluctantly engaged in talks to sell their captain, and if all goes to plan, an agreement should follow in the coming days.

Parish will sanction Guehi's sale through gritted teeth.

He'd like the defender to stay and sign a new deal, but the likelihood of that is virtually non-existent.

Selling to Liverpool - or losing Guehi for nothing - now appear to be Palace's only options.