Liverpool are prepared to cancel Cole's current agreement at Anfield to ensure he gets a move away from the Reds this month and Hammers boss Sam Allardyce is set to land the player, although there is still interest from Harry Redknapp at QPR.
Cole came through the youth ranks at Upton Park before moving to Chelsea for £6.6m in 2003 prior to moving to Liverpool at the end of his contract in 2010.
His time with the Reds has been less than successful though, and he spent last season away on loan at Lille.
Liverpool are now prepared to let him move on for free and he seems set for a West Ham return.
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