Liverpool's American owners Fenway Sports Group are to slash manager Kenny Dalglish's transfer budget for next season, according to a report.
The firm are prepared to allow the under fire boss to remain at Anfield going into the new campaign but with capped resources, according to The Mirror.
Dalglish spent £108m on six players - including Andy Carroll, Luis Suarez, Stewart Downing and Jordan Henderson - in 2011.
The Reds have been criticised for their Premier League form, which has seen them slip below local rivals Everton into eighth place.
Dalglish's side lost the FA Cup final to Chelsea last weekend, going down 2-1 at Wembley, but lifted the League Cup earlier this season.
Liverpool's failure to secure Champions League football next season is said to be behind the club executives' decision to rein in the manager's spending.
