Manchester United manager Louis van Gaal has refused to rule out the possibility of signing goalkeeper Victor Valdes.
Manchester City boss Manuel Pellegrini says he is confident that England goalkeeper Joe Hart will sign a new contract.
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.