BILD says the Reds see Upamecano as an alternative to Crystal Palace defender Marc Guehi.
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Both centre-halves are off contract in June, but unlike with Guehi, Liverpool can secure Upamecano to a pre-contract from January 1. Clubs are blocked from signing players to pre-contracts who are connected to clubs in the same country.
Real Madrid are also interested in Upamecano, though Liverpool could made an offer in January to convince Bayern to part with the defender early.
The Reds have concerns about their defensive options after losing Giovanni Leoni for the season to a knee injury this week.