The Holland international has worked hard throughout the summer to overcome an ankle injury that ruled him out of Euro 2008 at the last moment.

Babel limped out of training with the Dutch squad on May 31, 24 hours before Holland's last warm-up friendly against Wales in Rotterdam.

At the time it looked doubtful that he would be back before the start of the new season.

But less than six weeks since the injury, Babel has returned to full training with Liverpool at Melwood.

And that means the Dutch will be able to immediately name him in their squad for the Beijing Olympics.

Benitez has already lost Lucas to the Brazil squad and Javier Mascherano as an over-age player with Argentina, who are also likely to call up Emiliano Insua.

FIFA principles state that clubs should release under-23s for the Olympics, while Mascherano will go because he has expressed a desire to play for his country in the tournament.

And Benitez now cannot stop Babel's inclusion in Holland's squad to be confirmed shortly.

Benitez told liverpoolfc.tv: "Obviously, we are really pleased that Ryan is coming back to training because he is an important player for us and he has worked hard to recover from the injury he suffered with Holland.

"But we are really worried because after getting him fit it is likely that we could lose him again if he is selected for the Olympics. This is a big problem - we prepare him and then he goes away with the national team.

"This season is very important for him. In his first season he was settling in but this time he has more experience and we are looking for him to give something from the beginning, so it is really important for him to start working with his team."

If Babel had not worked so hard to overcome his injury, and had been a couple of weeks longer in his recovery, he would not have been in line for selection for the Dutch side.

Along with the other Liverpool players involved in the Olympics, Babel will miss both legs of the Champions League third qualifying-round tie early next month and the opening Premier League games with Sunderland and Middlesbrough.

And Benitez will be left fretting that he does not break down again and damage his barely-fit ankle.

Benitez said: "This has been a strange pre-season, because we have to wait for players to return late following the Euro finals and then at the end of the preperation we are going to lose players to the Olympics."

Benitez is expecting to complete the signing of Brazilian goalkeeper Diego Cavalieri for £3million after the Palmeiras player successfully passed a medical this week. He will be the club's third summer signing, following full-backs Philipp Degen and Andrea Dossena.

Cavalieri's agent, Juninho Parmigiani, has told Brazilian media: "We will conclude everything soon. He has already had the necessary medical examinations, talked with some of his new team-mates and has been impressed by what Rafael Benitez had to say to him."

Liverpool are expecting to recoup some of the fee by selling French keeper Charles Itandje to Galatasaray for £2million. They will also now sell Scott Carson, with Stoke showing interest.

Peter Crouch has agreed terms with Portsmouth on his £11million move to Fratton Park, and the deal will be concluded when medical reports are cleared.

Liverpool will then try to finalise the move of Gareth Barry to the club, hopefully in time to figure in Saturday's opening friendly at Tranmere.

Villa are believed to have said they will accept £17million plus Irish full-back Steve Finnan, who they value at £1million. They also want the fee paid in two instalments, half now and the rest in 12 months.

The two sides now seem close enough for the summer-long saga to be concluded by the weekend.

Benitez, who has already spoken of his appreciation of Crouch's contribution to the club, has now claimed the striker's progress on Merseyside has vindicated his £7million purchase from Southampton three years ago.

Benitez told Liverpoolfc.tv: "I am proud of the progress he has made. When we brought him here people were talking about the deal, especially because he did not score for several games.

"But he showed his quality, showed he was a good player and a fantastic professional. We know we will miss him but you cannot stop a player who wants to play every week."