Leonardo has been tracked by the Reds' South American scouts for the past 12 months.
Bolavip says Liverpool are 'preparing' a £50 million bid to sign the 19-year-old, which would trigger his release clause. He would fit their player criteria as one for the future if they opt to make a move for one of Brazil's rising stars.
Leonardo has recorded 16 goals and five assists across all competitions in Brazil this season and has already racked up over 100 appearances for Santos since breaking into the first team two years ago.
He also has seven goals in three appearances for Brazil's U20's.