David Thompson has agreed to sign for Coventry City, and Aston Villa's Julian Joachim could be the next target.

The Liverpool midfielder has agreed to sign a four-year contract thought to be worth around £2.75 million. He will undergo a medical on Thursday.

That figure could rise to £3 million depending on appearances.

Thompson, aged 22, has played 56 games for the Reds, scoring five goals.

He made several important contributions to Gerard Houllier's new-look side last season, either as a striker or in right midfield, but was unable to hold down a regular spot in the side.

With an influx of fresh signings to Anfield this season, Thompson decided to look elsewhere for regular action.

Sunderland were also thought to be interested in signing Thompson, who has played for England up to under-21 level, but a bid never materialised.

Coventry's new recruit is expected to fly out to Belgium soon to join the Sky Blues on the European leg of their pre-season friendlies.

Aston Villa's striker Julian Joachim is the latest subject of transfer speculation as the Sky Blues hunt for a successor to Robbie Keane.

Meanwhile club chairman Bryan Richardson has denied any interest in West Brom's Lee Hughes.

He said:

“The one thing I want to get straight is that we are not interested in Lee Hughes and I don't know where that's come from.

“Sure Gordon was at West Brom's game on Friday, but he goes to a lot of games to see a lot of players. We're hoping to bring new players in, but Hughes is not one of them.”

West Brom manager Gary Megson admitted earlier this week that he had been talking to Strachan about Hughes.

Richardson added:

“We've identified the players we want and we're in negotiations with those clubs and those players.

”We expect within the next week to certainly bring two of those to the club and probably one within the next couple of days.”