Liverpool co-owner Tom Hicks is trying to raise funds to match a takeover offer from a Dubai government-run fund and retain control of the English football club.

Sources close to the negotiations told Reuters that Hicks wants to buy part or all of the 50 per cent of the club he does not own, the sources said. This stake is in the hands of George Gillett, with whom Hicks bought Liverpool for £219 million a year ago.

Hicks, also owner of the Texas Rangers baseball team, and Gillett have received a £400 million takeover offer from Dubai International Capital (DIC).

The U.S. billionaires outbid DIC when they bought the club last year, but fell out with each other this season, following some public comments from Hicks about having held talks with German coach Juergen Klinsmann over the possibility of him replacing Liverpool manager Rafa Benitez.

"One will end up buying the other out, with Dubai ending up with a smaller stake," one of the sources said.

Hicks, who has said he is not a seller, declined to comment from his office in Texas. Gillett, in Colorado, also declined to comment, as did Liverpool.

DIC Chief Executive Sameer al-Ansari said on Tuesday its talks with Hicks and Gillett were stuck because one of the owners "was in dreamland" about valuations.

Hicks said in January he had talked to DIC "once" about a 10-15 per cent stake sale, but Dubai said at the time the valuation was too high.

Hicks, co-founder of buyout firm Hicks, Muse, Tate & Furst, also owns the Dallas Stars NHL franchise, while Gillett owns NHL's Montreal Canadians.

Reuters