With just eight starts in the league - including his ill-fated debut against Arsenal which saw him dismissed - the club have decided it's time to cut their losses on the £100,000-a-week star.
A Liverpool insider was quoted as saying in The Sun: "It's tough on Joe because he is a great kid. But things just haven't worked out for him.
"Kenny is building a new Liverpool with the likes of Andy Carroll and Luis Suarez and he wants to bring in more new players in the summer.
"And, unfortunately, that means Joe will be surplus to requirements."
West Ham, where Cole burst through as a teen sensation, along withTottenham Hotspur, are both keen in acquiring his services.
The Reds are reportedly looking for offers in the region of £10million for the former England international.
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