The People are reporting that Liverpool will go head to head with Chelsea for the signing of Wolfsburg attacking midfielder Diego. According to the paper, Liverpool manager Kenny Dalglish is targeting three midfield signings in the summer, and Reds boss is looking at the possibility of bringing the 26 year old Brazilian playmaker to Anfield. Diego is tipped to leave Wolfsburg after falling out with boss Felix Magath on the final day of the season when Magath only picked him as a substitute. The Brazilian did not take his place on the bench for the match against Hoffenheim, a match they won 3-1 to keep their Bundesliga status. Chelsea are also said to be interested in the player, with Wolfsburg looking for £15million.