Liverpool will have to submit an application to the Premier League committee if they want to add Victor Valdes to their squad before January.
Although the summer transfer window has closed, the Reds will be able to sign the former Barcelona goalkeeper as he is currently a free agent.
The Reds, who have completed the signing of ten players this summer, were being linked with a move for the 32-year-old Spaniard on transfer deadline day, but they seem to have decided against signing the player.
It is believed that that Liverpool manager Brendan Rodgers is waiting for Valdes, who is currently ruled out until October due to a cruciate knee ligament injury, to return to full fitness before offering him a contract.
However, the Merseyside club will have to submit a formal application to the Premier League before making a move, according to ESPN.
The Reds have a good chance of seeing their application approved as they still have some space in their squad to accommodate Valdes.
The Premier League allows a maximum of 25 players in a squad, out of which a minimum of eight players have to be home grown.
Home grown means that the player, regardless of his nationality, must have spent at least three years in a English or Welsh club before reaching the age of 21.
As Liverpool have a total of only 19 players (out of which ten are home grown) in their current squad submitted to the Premier League, they will be facing no objections from the English league committee when they submit an application for Valdes.
Rodgers is believed to be keen on securing the Spaniard's signature to give some competition to his current first-choice goalkeeper Simon Mignolet.
Valdes, who is a product of Barcelona's youth academy, left the Spanish club after 12 long years, rejecting a contract extension, saying that he wanted a change.
He was heavily linked with a summer move to Ligue 1 side Monaco, but the French side decided against signing him after he suffered a serious injury in March.