The teenager wants to get regular first team football to take his career to the next level.
He is set for a move to League One side Oxford, per the Daily Mail.
The Wales international will be playing under Scouse boss Karl Robinson.
Woodburn became the youngest scorer in Reds history in 2016, but he has failed to make sufficient progress since.
He will be hoping a move to loan in a competitive league will help him develop his game.