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Attacking midfielder has entered the final year of his contract.

Harvey Elliott is reportedly close to leaving Liverpool, less than a week after he was omitted from the matchday squad against Newcastle.

Elliott, who has become something of a forgotten figure at Liverpool after a difficult loan spell with Aston Villa last season, returned to his parent club in the summer with uncertainty surrounding his future.

Although he featured under new head coach Andoni Iraola during pre-season, the attacking midfielder was not included in the 20-man matchday squad for Liverpool's 2-2 draw at St James’ Park in their opening Premier League match of the season.

With youngsters Lewis Koumas and James McConnell chosen ahead of Elliott, the signs appeared clear regarding what lay ahead for him.

"With Harvey, with [Luke] Chambers, with some of the players that I decided – because I can only choose 20 – to leave out, it’s a matter of finding the balance on the bench," Iraola told reporters ahead of the Nottingham Forest game.

"In Harvey’s case, he’s trying, he’s improving every week, but I still prefer other options.

"Probably I was in doubt with James McConnell in terms of getting into the squad, and I decided to put James in the squad.

"But it’s another new week, new chances for everyone, and they have to keep that mentality."

It has been widely reported that Elliott has agreed personal terms with Valencia after positive discussions, although it is still unclear whether the move will be another loan or a permanent transfer.

The latter appears a strong possibility as the 23-year-old has now entered the final 12 months of his contract at Anfield.

According to Fabrizio Romano, Valencia have opened talks with Liverpool as they try to reach a club-to-club agreement.

Elliott slipped further down the pecking order at Liverpool following Florian Wirtz's arrival last summer, and any hopes of featuring out wide have been further diminished with Bradley Barcola on the way.