The 20-year-old has established himself as a regular under Megson and the Bolton chief is keen to keep him at the club.
"We've spoken to Liverpool about signing Danny on a permanent deal and he seems keen," Megson told the Daily Star.
"But Liverpool have said they want to keep things as they are and we'll see at the end of the season.
"I don't think he wants to go anywhere else. He likes it here and he is playing first team football.
"We will pick that one up again at the end of the season.
"I don't think there's an option in the loan arrangement but we can sit down and talk it over."