The Mirror says the highly rated striker is wanted by Arsenal, Juventus, Inter Milan and West Ham, but the Reds have stolen a march by offering a big money pre-contract agreement they expect the player to sign before the end of the month.
Bordeaux striker Chamakh is out of contract at the end of the season, and he signaled his intent to wait for a move until the summer, when he can command a massive signing on fee, in the absence of a transfer fee.
That has put off Arsenal, who were hoping to tempt the Morocco international to come to north London during the current transfer window, by paying a small fee to his French club.
But after intensive negotiations at the weekend with the player, Liverpool believe they have a deal and are prepared to use the money they will raise through sales during the current window to pledge to the 26 year old.
It could cost them as much as a £12million signing on fee, and a contract in the region of £60,000 a week, which would amount to a massive outlay approaching £25million over the course of a five year deal.