West Ham hope to finalise the transfer of Joe Cole from Liverpool this morning.

Cole underwent a medical yesterday after it emerged that Liverpool are prepared to cancel the 31-year-old’s contract.

West Ham, who brought Cole through their youth academy in the 1990s, hope the midfielder will sign his new contract before midday so he can play in tomorrow’s FA Cup third-round clash against Manchester United.

Should the deal go through, it will end a nightmare 2½-year spell on Merseyside for the former Chelsea player.

Cole started just nine Premier League games since he swapped Chelsea for Liverpool in the summer of 2010, and spent last season on loan at French club Lille.

Liverpool manager Brendan Rodgers deemed him surplus to requirements when he took over and Cole is keen to go back to Upton Park. It is understood Cole would receive a €3.6 million pay-off to join West Ham as he would earn over €8.6 million from the last 18 months of his Liverpool deal. West Ham also said Yossi Benayoun has returned to Chelsea.