West Ham United have agreed a £2m loan fee with Liverpool for Andy Carroll.
The season-long deal for the England striker would be with a view to a permanent transfer of £17m, provided West Ham stay in the Premier League.
However, it is thought the 23-year-old does not wish to leave Liverpool on a permanent basis.
The Reds turned down a bid from Newcastle to re-sign the player, having bought him from the Magpies for a club record fee of £35m in January 2011.
Carroll, who scored one goal for his country at Euro 2012, has struggled since his big-money move, having scored just 11 goals in 56 appearances.
He appears to have become surplus to requirements at Anfield following the arrival of former Swansea boss Brendan Rodgers and the signing of Italian striker Fabio Borini from Roma.
Newcastle manager Alan Pardew had hoped to bring the former Toon Army favourite back to the club.
Rodgers had said Liverpool would not consider a loan move for the player, but the Northern Irishman now appears prepared to allow Carroll, 23, to link up with former Newcastle manager Sam Allardyce at Upton Park.
Carroll had also been linked with a transfer to Italian side AC Milan.
The striker began his career at Newcastle, spending a season on loan at Preston, before returning to the club and becoming top-scorer in the 2009-10 season as the Magpies returned to the Premier League.
Carroll collected a League Cup winner's medal with Liverpool last season, starting in the Wembley final against Cardiff City.
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