Latest Transfer News: Aston Villa are close to signing Phillippe Coutinho on a permanent deal from Barcelona after his impressive loan spell

In the latest transfer news, Phillipe Coutinho is close to signing on a permanent basis for Aston Villa after impressing on loan this season.

Sportsmail revealed earlier this week that Villa had made an offer of £12million for the former Liverpool star, significantly lower than the set £33m fee that was agreed when Coutinho signed from Barcelona on loan in January.

Barcelona are willing to take a financial hit to move the Brazilian's sizeable salary off their books.

He featured against his former club Liverpool on Tuesday night, playing 70 minutes before being replaced by Emiliano Buendia in the 2-1 home defeat.

His impressive form this season has seen him being linked with both Arsenal and Newcastle, but Villa boss Steven Gerrard has made it clear he wanted him to remain on the club's books next season.

Gerrard left him out of his side's 3-1 win over Burnley last week but insisted it was important to keep his players fresh as he rotates him with Buendia.'

We want Philippe Coutinho here for sure,' said Gerrard, who played with him at Liverpool.

'We have five games in 15 days so Phil and Emi will both get enough game time to keep themselves satisfied.

As a club, we want to be in a place where games come thick and fast. 'Phil understood the decision, he has played a lot. There are no egos here.'

The club's financial problems, coach Xavi revealed on Monday, ruled them out of signing Erling Haaland, who is set to join Manchester City this week.

However, sources at the club told ESPN they are working on ways to strengthen the side this summer, with Xavi especially keen to add more goals in attack.

For the latest transfer news, follow Sportz Point as we cover the summer transfer window for the upcoming season.