Jurgen Klopp has sent Liverpool scouts to watch long-term target German U21 Mahmoud Dahoud, who plays for Bundesliga side Borussia Mönchengladbach.
Klopp sees the midfielder as an option for the Reds' future and has been impressed by the youngster's development in Germany.
The 21-year old has played 46 times for the club since his debut in 2014, scoring six goals.
Last August, the player's agent rejected a new contract under the assumption that Dahoud would be allowed to leave at the end of the 2016/17 season.
The Syrian-born playmaker has also interested Pep Guardiola, who is keen on overhauling his ageing Manchester City squad to add youthful energy to the team, which already consists of 19-year old striker Gabriel Jesus, 21-year old Leroy Sane and 22-year old Raheem Sterling.
The average age of the Manchester City squad is one of the oldest in the Premier League, and Dahoud would be a welcome addition to Guardiola's side.
A host of other top European clubs are also suspected to be monitoring Dahoud, such as Barcelona, Borussia Dortmund, AC Milan and Juventus.
Dahoud has made six appearances for Germany's under 21 side this season and is seen as a future star for the German national side.
He is the first player born in Syria to play in the Bundesliga, having fled the country as an infant to escape from the Assad regime in 1996