Liverpool manager Jurgen Klopp insisted he is free to sign players from Borussia Dortmund, denying an agreement is in place to prevent him raiding his former club.

The German coach has been linked with moves for several of Dortmund's stars, including defenders Mats Hummels and Neven Subotic and midfielder Ilkay Gundogan since taking over at Anfield in October.

However, Klopp has told supporters not to expect multiple transfers between the two clubs, explaining how his new side are unable to compete on the same finance scale as other elite clubs.

"I have no agreement with Borussia Dortmund," Klopp said.

"I heard about an agreement, but no. Yet in my opinion it only makes sense to go for players we think we can get.

"So if we want to battle [with the likes of Chelsea and Manchester City]... we can pay 100 [million], they can pay 120. It’s a crazy marketplace when you start doing this.

"There are so many mothers in the world that have brilliant sons, so you don’t always have to take the guys that everybody knows.

"Maybe you take one. But I have a good relationship still with Borussia Dortmund and with all the players.

"There is nothing between us and if there was a possibility that we could get one of those players and we needed him, then we could try it.

"But there is no agreement, of course not. And there is no agreement that we can’t sell players to Borussia Dortmund."

The January transfer window will provide Klopp with the first opportunity to lure players to his new home, but the 48-year-old said he would only be tempted to recruit players if they are a necessity.

"I didn't ask [the owners], I'm sure we could [do something]. The only answer I can give is we won't do anything only because it's possible," he said.

"We only want to do something if we feel it is necessary or there is an opportunity where we cannot say no, or our situation changes in a way where we have to take players in."