Roy Hodgson has told Swiss defender Phillipp Degen he is free to look for a new club.
"We have had an amicable conversation and he wants to play football," said Hodgson.
The new Liverpool manager has brought in England international Joe Cole, Serbian forward Jovanovic, and recently agreed a fee with Rangers for youngster Danny Wilson.
Gerrard has expressed his desire to stay at the club. Hodgson will have to convince Torres and Mascherano to make the same choice.