Liverpool are chasing Wigan Athletic midfielder James McCarthy.
The People says Reds boss Kenny Dalglish is targeting three players to fill his midfield for next season.
Dalglish sent assistant Sammy Lee to watch the 20-year-old against Everton three weeks ago, and the report back was glowing.
Chelsea also fancy the young Scotland international, rated at around £8m, but Liverpool hope to steal a march on the Londoners by tying up a deal quickly.