Southampton midfielder Romeo Lavia has reportedly already agreed personal terms with Liverpool, with the Reds now attempting to settle on a transfer fee with the Saints.
The 19-year-old will leave Southampton this summer following their relegation to the Championship, and a number of clubs have been credited with an interest in his services.
Manchester City are thought to have considered making an attempt to re-sign the Belgium international, who left the Etihad Stadium for St Mary's last summer.
Meanwhile, both Manchester United and Chelsea are thought to be admirers of the central midfielder.
However, Liverpool have emerged as the favourites to sign him this summer, as the Reds look to bolster an area that has been hit with a number of departures during the current market.
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According to Football Insider, Liverpool have already had a £38m offer turned down for the youngster, but the Merseyside giants are planning to return with an improved bid.
The report claims that Lavia has also already agreed personal terms with Jurgen Klopp's side, who are leading the race to sign him despite interest from elsewhere.
The midfielder made 34 appearances for Southampton during the 2022-23 campaign, scoring one goal and registering one assist, with 29 of those outings coming in the Premier League.
Liverpool have signed two midfielders this summer in the shape of Alexis Mac Allister and Dominik Szoboszlai, who have arrived from Brighton & Hove Albion and RB Leipzig respectively.
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However, Jordan Henderson, Naby Keita, James Milner and Alex Oxlade-Chamberlain have all moved on, while Fabinho is also said to be on the verge of completing a move to Saudi Arabia.
Speaking during his press conference on Saturday, Klopp confirmed that there would be at least one more midfield signing before the end of the transfer window.
"It's definitely important to strengthen in midfield. We have to do something, that is clear," he told reporters.
"We are working on solutions. First people want changes, now everyone is worrying about the changes. We are really optimistic about it. Excited as well."
Liverpool have three more friendlies this summer against Leicester City, Bayern Munich and SV Darmstadt 98 before opening their Premier League campaign away to Chelsea on August 13.
