Schalke have just convinced Huntelaar to agree to a new two-year extension on his contract.
But Keegan reckons that the German club are so hard up they would still accept big money for Huntelaar.
He told the Daily Star Sunday: "The player I would love to see Liverpool sign is Huntelaar.
"He's a natural centre-forward and is considered to be on a par with Robin van Persie by many Dutch fans. He's 29 years of age and he's got the experience so the Premier League is not going to faze him.
"Schalke are in a real slump. They have just sacked the manager there and are having a poor season in the Bundesliga.
"It might be a good time for Liverpool to get someone who is a proven goalscorer in a quality league.
"The only problem is that he's signed a new contract.
"Though that may just be an attempt to squeeze out some extra value for him."