The Reds, per O Jogo in Portugal, will put in a bid for the talented pass master.
Given the club also have to replace manager Jurgen Klopp, there will be a lot of turnover at Anfield in the summer.
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Jornal de Noticias add that another Portugal-based player could be heading to Anfield.
They claim that Liverpool are inquiring about Sporting CP star Goncalo Inacio.
Such a move would be more likely if Sporting's manager Ruben Amorim signs for the Reds as well.