Liverpool need to find a UK work permit for Allan to complete the youngster's signing from Internacional.
The Daily Express says they are trying to sign Brazilian teenager Allan Rodrigues de Souza in a £500,000 deal.
The 18-year-old midfielder plays for SC Internacional and would require a work permit before the transfer can be completed.
Liverpool played in the Frenz International Cup in Malaysia and Indonesia at the start of the year and it is understood he came to the club's attention then. Internacional won the tournament.