Liverpool chairman Tom Werner has told Reds boss Kenny Dalglish that he can spend big in the transfer window.
Dalglish is keen to strengthen his squad before the window closes on 31 January and he has been linked with a move for Ajax forward Luis Suarez, who is valued by the Dutch club at around £20million.
New England Sports Ventures, the American group who bought the Reds in October, had been coy about their spending plans. But Werner, whose group also owns the Boston Red Sox baseball team, has now given Dalglish the green light to pay the money required to bring in top players.
Asked if Liverpool could still secure marquee signings like the £22million spent on Fernando Torres in 2007 Werner replied: "Yes. Look at our history. The Boston Red Sox have the second-highest wages in baseball and we have been as successful, if not more, than the New York Yankees. We are coming from a market that is somewhere like Liverpool, we are not New York or London, and we have been successful in generating revenues which we have ploughed back into an excellent team.
"We will be driven by value but we certainly have the resources to have some targets," he said. "We are in this for the long-term and every pound that we make will strengthen the club. We do have great resources. We have a very high wage bill and it shouldn't be such that we are 12th in the league right now. I don't want to get the wage bill down, I want it to increase and we have the resources to do that - I just think we ought to be performing at a better level than we had been."
Werner admits the long-term vision NESV have for Liverpool involves increasing income from either a new or revamped stadium in order to be able to invest in the club. But he accepts that will take time, while supporters who are enduring the worst season for decades are desperate for signs of a revival.
"Everyone knows our long-term goals are to restore the lustre to the club and we want to honour our great history by winning more trophies," he added. "This has obviously been a somewhat frustrating period for all of our supporters so in the short term we just want to see some progress and hopefully under Kenny our fortunes will improve.
"We consider ourselves to be a big-four club and we have a lot of resources," he went on. "At the same time we need to figure a way to grow our club because no-one is happy with the status quo at Anfield because we need to increase our match-day revenues. I feel the long-term is bright and I am very encouraged about some of the ideas to increase our revenue."