Thailand's billionaire prime minister said on Tuesday that his country's unusual bid for a major stake in famed English soccer side Liverpool had been approved by the club's board, the unprecedented deal to be funded by a one-off state lottery.

"In principle, they have no problem with our offer," Thaksin Shinawatra said on Tuesday before a cabinet meeting to discuss the details of the 4.6 billion baht ($112.7 million) bid.

"By the end of June, we will own a stake in a premier league club," the telecom tycoon-turned-politician, told reporters.

The deal has boosted Thaksin's flagging domestic popularity, but it is unlikely to go down well with die-hard Liverpool fans who favoured a rival bid from a Merseyside businessman spurned by the club's board last week.

Although details are still emerging, it appears the deal will see the country -- through a government sports board -- give the club a significant cash injection and buy a 30 percent stake.

Thailand -- where football and Liverpool are immensely popular -- will in return be able to market some of its products and industries using the club's name.

A senior official in Thaksin's office said the Liverpool board called Thai negotiators at 1600 local time (0900 GMT) on Monday to accept the deal.

"We are waiting for final written confirmation," he said.

There was no immediate comment from Anfield, home of the 112-year-old club which needs investment to buy new players and help fund a move to a bigger stadium.

Liverpool is 51 percent owned by club chairman David Moores, whose family has had control for half a century, and 9.9 percent owned by television company Granada.

Thaksin has said the Thai offer would inject 45 million pounds ($80.7 million) into the club, with the rest going to buy shares from existing shareholders.

Thailand would get commercial rights to use the Liverpool brand to promote local products. The premier league team would also set up a soccer academy in the country.

Thaksin said on Tuesday "minor points" such as the number of Thai members of the club's board still had to be worked out.

Those details may be negotiated with Liverpool in the coming days, said Santiparb Tejavanija, head of the Sports Authority of Thailand (SAT), the government body appointed to oversee the investment in the club.

However, Santiparb told reporters he would not fly to Liverpool tonight as he stated earlier. He added: "If we can't tackle the remaining issues from here, I may have to go to talk to them face-to-face," he said.

LOTTERY PLAN

Thailand's cabinet approved a plan on Tuesday to set up a new company to manage the Liverpool investment, and raise funds to finance the purchase of the 30 percent stake.

The plan is to raise 10 billion baht ($245 million) via a one-off state lottery, whose proceeds will pay for the Liverpool deal and "long-term sports development" in the southeast Asian country.

Thai officials say the new company, to be set up by the Sports Authority, will be 60 percent owned by the government and financed with lottery funds.

The remaining 40 percent will be owned by the public who will own shares through the purchase of the lottery tickets, said Somchainuk Engtrakul, a senior official at the Finance Ministry.

Thaksin's bid has drawn a mixed response from Liverpool fans in England after the British media carried reports on Thailand's human rights record, especially a "war on drugs" last year in which more than 2,500 Thais were killed.

Thaksin has dismissed the controversy over his government's human rights record and said he would consider bidding for other English clubs if the Liverpool deal fell through.

Thai negotiators successfully fought off a rival offer from Steve Morgan, a Liverpool building tycoon, who had proposed a 73 million pound ($127.8 million) cash injection.

European champions four times in the 1970s and 1980s, Liverpool have been overshadowed by Manchester United and Arsenal in recent years, while the funds now available to Chelsea could push the "Reds" further down the pecking order.