Samir Nasri has revealed he is ready to open talks with Manchester City about extending his stay at the Etihad Stadium.
Blackburn have signed young defender Michael Keane on loan from Manchester United for the remainder of the season.
The north west clubs have agreed a fee in the region of £300,000 for the 16-year-old midfielder, who is the latest sought-after name to emerge from Alex's famed youth production line.
Former Anfield stars Rob Jones and Danny Murphy started their careers with the Railwaymen before making the move to Merseyside.
Smith, a member of the Crewe Academy since the age of 11, was set to join Manchester City last month but the deal fell through.