Jamie Carragher says Liverpool are looking to sell "three or four players" to raise funds to sign Thiago Alcantara.
But the former Reds centre-back added that if they fail to do this, and miss out on signing the Spaniard, it's not the end of the world.
Liverpool have been linked with a move for the Bayern Munich midfielder all summer but do not have the funds readily available to snap him up.
As a result, Georginio Wijnaldum has been linked with a move to Barcelona to free up funds to make the transfer happen.
Carragher was asked about the situation on Sky Sports on Saturday, and confirmed that Liverpool need to sell before they can buy.
He said: "Liverpool have got three or four players in the squad they are looking to move on.
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"It seems like they have to sell before they buy, that was the case with Dejan Lovren. He had to leave before a left-back could come in.
"Thiago would give Liverpool's midfield something different, no doubt."
Liverpool have previously splashed huge money in transfer windows, parting with a combined £142million to sign Virgil van Dijk and Alisson.
But as Carragher pointed out, they had to sell Philippe Coutinho first before doing this.
He added: "Liverpool lost there player to bring Van Dijk in and the golakeeper. There's no point buying for the sake of it, but I do feel they need someone to supplement the front three.
"I think the huge clamour for Thaigo is a little bit disrespectful to Liverpool's current midfield three. Yes he would add something different. But if he doesn't come in, it's not the end of the world, this is still a fantastic midfield for Liverpool."
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