Bolton have failed with a £1.5million bid for Liverpool midfielder Jay Spearing but are expected to make an improved offer.
The Trotters are desperate to add more bite to their midfield as they look to win promotion back to the Premier League and have targeted a move for the Reds midfielder.
Bolton boss Owen Coyle was hoping to take the player on a season-long loan deal but the Reds want to raise cash to fund a move for Clint Dempsey and have insisted on a permanent deal.
Talks have taken place between both clubs and it is thought Liverpool are holding out for £3million in the hope other clubs will come in before Friday's transfer deadline.
However Bolton are expected to up their bid to £2million and Liverpool could accept as Brendan Rodgers wants Dempsey on board as soon as possible.
Rodgers is also willing to cash in on Joe Cole and Charlie Adam in what looks like being a busy week for the Reds boss.