Liverpool manager Roy Hodgson admits he will have to spend wisely as he looks to reshape his Liverpool squad on a restricted budget this summer.

Hodgson is willing to allow Emiliano Insua, Philipp Degen and Albert Riera to leave Anfield this summer, and Javier Mascherano looks likely to move on amid reported interest from Inter and Barcelona.

However, it appears Hodgson is set to keep the core of the team together and he has already added Joe Cole, Milan Jovanovic and Danny Wilson to the squad. Hodgson will now look to spend his limited funds carefully as he looks to get the team back on track.

"We don't have the unlimited funds that teams like Manchester City, and even Tottenham to some extent these days, seem to have," he said. "On the other hand, some money is being made available and we are doing everything to use that money as sensibly and as intelligently as we can.

"We had quite a good squad of players last season: Steven Gerrard, Fernando Torres, Jose Reina - these players means there is a certain strength to the team whatever we do.

"We would like to make some changes. Every manager who comes to a new club would like to make changes, to bring in some fresh players."

Widespread reports in the English press on Thursday suggested Manchester City left back Wayne Bridge is Liverpool's next target, while AC Milan striker Klaas-Jan Huntelaar has also been linked.