Rafael Benitez started his summer of change with the acquisition of defender Philipp Degen on Tuesday.

The Anfield chief confirmed the Switzerland right-back will sign for the club on a free transfer from Borussia Dortmund when his contract with the Bundesliga club expires on July 1.

And Benitez's next move could be to try to bring Udinese defender Andrea Dossena to the club for a fee of around £8million.

Dossena, a left-back, has been omitted from Italy's squad for the European Championship finals next month, having made his debut for his country last November against South Africa.

But Benitez has been trailing the 26-year-old, despite the fact he signed a new four-year contract only recently.

Benitez is still awaiting progress on his bid to sign Aston Villa's skipper Gareth Barry, but with Villa boss Martin O'Neill attending Tommy Burns' funeral in Glasgow on Tuesday, anything further on that front has been put on hold.

And Lee, who rejoined the club's coaching staff on Friday, insists Liverpool are not far away from being genuine contenders.

He said: "This club has made great strides over recent years. People ask when are we going to win the league, and there is no doubt about it, that is the one the fans want.

"Liverpool will always aim to be number one, you do not aim for anything else at this football club.

"I do not think we are very far away from a title-challenging side. People may say differently, but I do not think so.

"It is fine lines in certain games, little things here and there. We are not far away."

He added: "Everyone wants the title, everyone at this club, not just Sammy Lee. Everyone who supports this club knows exactly what we want and that is what we are aiming for.

"We do not aim for anything less than the top spot. We have not had it for a while, granted, but to aim for anything less would be doing this club a disservice.

"I can say that everyone here has been and is looking forward to getting that number one spot."

It seems likely Degen, 25, will be the first of a handful of significant new additions to the Anfield squad, rather than any wholesale changes.

The former Basel defender will compete with Alvaro Arbeloa and Steve Finnan for the right-back berth after he returns from Euro 2008.

And Benitez believes Degen can provide an attacking edge down the right flank.

He said: "Philipp is still young but has gained great experience from playing in the Bundesliga with Borussia Dortmund and on the international stage with Switzerland.

"He also played in the Champions League during his time with Basel and so is used to top-level football. He is an offensive player with great energy and a winning mentality.

"His strength is going forward and I am confident he will prove to be a quality addition to our squad."

Degen, who rejected concerted efforts from Dortmund to keep him at the club despite a season disrupted by injuries, was quick to accept Liverpool's approach.

He said: "When I received the offer from Liverpool, there was no doubt I would accept it.

"They are one of the biggest clubs in the world and I am looking forward to the challenge of establishing myself there and playing in the best league there is."

Many of Benitez's plans depend on being able to move players out of Anfield. One is goalkeeper Scott Carson, who it is believed has had his fee cut from £10m to £6m.

That looks an attempt to persuade Villa to try to sign the player who has been on loan to them all last season. But O'Neill is understood to be also considering trying to land Manchester United youngster Ben Foster on loan.