Liverpool transfer target Glen Johnson

Liverpool expect to sign Glen Johnson within the next week after Portsmouth accepted their £18.5m bid for the England right-back and Chelsea withdrew from the race for their former employee.

The deal will represent a significant breakthrough in the transfer market for Rafael Benítez, who was also informed today that Real Madrid's interest in Xabi Alonso has allegedly faded.

Johnson, along with David Silva and Gareth Barry, was a leading target for Benítez this summer and is clear to complete his move to Anfield after Liverpool matched Chelsea's offer for the 24-year-old last night.

Though unable to compete financially with Chelsea and Manchester City, who also bid for Johnson, Liverpool are still owed £7m by Portsmouth from the deal that took Peter Crouch to Fratton Park last year. That will be written off as part of the Johnson fee, with Andrea Dossena and possibly Alvaro Arbeloa being sold by Liverpool to swell Benítez's budget beyond a net £20m.

The England international considered a straight choice between Liverpool and Chelsea after electing against a move to City due to their lack of Champions League football.

Johnson had indicated to Anfield officials that he favoured a move to Merseyside and that decision became simpler yesterday when Chelsea opted against re-signing the player they sold for £4m in 2007. It is believed problems selling José Bosingwa may have forced Chelsea's sudden retreat, with the Stamford Bridge club unwilling to add another expensive right-back to their squad without off-loading the £16.2m Portugal international.