Mario Balotelli has agreed to take a pay cut in order to return to AC Milan on a loan from Liverpool.

Liverpool bought Balotelli from Milan a year ago for £16 million.

Balotelli was left out of the preseason tour of the Far East and Australia and has been training away from the first team.

The Reds have signed forwards Christian Benteke, Roberto Firmino and Danny Ings, while Divock Origi has arrived at Anfield after a year on loan at Lille.