Brendan Rodgers will make a £3.5 million bid for Charlton Athletic's Joe Gomez this week and is poised to offload Uruguay defender Sebastian Coates to Sunderland.
The Liverpool manager is expected lodge an offer in the next 48 hours and try to win the race for one of English football's emerging young talents.
Arsenal and Aston Villa are also keen on Gomez, 18, who appears certain to leave Charlton this summer with the Championship club seeking a transfer fee of £7 m after add-ons. Rodgers has been aware of the centre-half's ability for some time and sees him as a replacement for Coates.
The Uruguay international, 24, is due to end his four-year association with Liverpool to join Sunderland for around £4m.
Gomez has made just 21 league starts but is already highly regarded, winning four caps at England U-19 level, and has also been a long-term target for Arsene Wenger.
Aston Villa manager Tim Sherwood is also an admirer after first becoming aware of Gomez during his time in charge of Tottenham Hotspur's academy.
But any bid is certain to be complicated by the prospect of an imminent takeover, with one consortium being granted exclusivity. Liverpool also maintain an interest in the Villa striker Christian Benteke and the Southampton defender Nathaniel Clyne but the Anfield club are expecting another bid from Manchester City for Raheem Sterling in the next 48 hours.
Meanwhile, Gareth McAuley has signed a new one-year contract with West Brom.
The 35-year-old defender's previous deal was set to expire at the end of the month, but he has committed his future to the Baggies for another season.