Here's a look at 5 players the Reds could sign to close the gap on City before the end of the transfer window.
Nicolas Pepe - Lille
Nicolas Pepe proved to be one of the best players in Europe last season after scoring 22 goals and registering 11 assists in 38 Ligue 1 appearances.
Based on Pepe's sublime performances for Lille, he's unlikely to feature in their Champions League campaign considering he's on the radar of a number of top clubs, including Champions League winners, Liverpool.
After narrowly missing out on the Premier League title last season, Jurgen Klopp is looking to bolster his squad ahead of the new season in a bid to push for the title and signing a player of Pepe's quality will undoubtedly bring them closer to their goal of becoming Premier League champions.
Pepe is fast, agile and possesses great speed of thought as evidenced by his ability to find the right pass in the attacking third and get on the end of attacking moves.
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After moving to Barcelona last January for £142m, Philippe Coutinho has been unable to secure a regular spot in Barcelona's first team set-up as his performances have not been up to par with what you'd expect from a player who cost so much.
Coutinho is far down the pecking order as far as Barcelona's midfielders are concerned, hence Liverpool are reportedly interested in bringing Coutinho back to Anfield as they'd be able to secure his services for far less than the £142m Barcelona had to pay to sign him.
Coutinho made just 22 starts in the 2018/19 La Liga season and came off the bench 12 times, scoring 5 goals and making 2 assists.
Most would argue that Liverpool would do just fine without Coutinho in the squad as they did last season, which is somewhat true as Liverpool already have a great group of midfielders working tirelessly to make Klopp's system work.
Coutinho's skillset could still be useful to Liverpool, though, just as it was before his move to the Blaugrana.
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Koulibaly is by far one of the most sought-after centre-backs in Europe at the moment. The Senegal international is an elite defender capable of doing the job of two defenders due to his impressive ability to read plays and make accurate tackles.
A 'Virgil Van Dijk – Kallidou Koulibaly' partnership would be insanely scary and would probably be the best centre-back pairing in Europe given both players possess similar builds and abilities.
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Dani Ceballos - Real Madrid
Following Real Madrid's exploits in the transfer market, Dani Ceballos has automatically fallen down the pecking order at the club and is almost certainly surplus to requirements at this point thanks to Madrid's new wave of Galacticos.
Ceballos, though, is a talented midfielder who if given the opportunity to, can produce world class displays for his side.
He's currently one of Tottenham's primary transfer targets, but Liverpool are also said to be interested in signing him.
Real Madrid's asking price for Ceballos is reportedly in the region of £50m, a reasonable fee considering his potential and age (22).
Ceballos is a great passer and is quite good at striking the ball from range – he'd be an excellent addition to Liverpool, but he'll most likely be utilised as a rotation option.
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Junior Firpo - Barcelona
The 22-year-old has a £45m buyout clause which Liverpool are looking to trigger in a bid to improve their squad depth ahead of next season.
Firpo is an athletic left-back who stands at 6'0 which allows him to win aerial duels in addition to being able to chase pacey wingers down and win the ball back.
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