Stuttgart coach Christian Gross is eager to add some more depth to his squad in the summer transfer window and the former Basel gaffer supposedly sees the 27-year-old Degen as the perfect addition to his roster.
The highly rated defender previously enjoyed a successful Bundesliga spell with Borussia Dortmund from 2005-2008 before leaving Germany for the Premier League. However, he never really managed to secure regular first team action at Liverpool.
New manager Roy Hodgson told Degen earlier this week that he's no longer needed by the Reds and the full-back could therefore be on his way back to the Bundesliga.
Stuttgart are supposedly preparing a €1.5 million [£1.2m] offer for the defender and Liverpool are widely expected to accept the Schwaben's bid for Degen.
-
What we learned this week: Suarez's kung-fu aside, Liverpool are so boring they can be upstaged by a cat
Kenny Dalglish's side and Spurs were upstaged by a feline pitch invader on Monday night, while Harry Redknapp has already been appointed England manager by everyone but the FA
-
Same difference? - What would Mourinho be doing differently to Villas-Boas at Chelsea?
Both Portuguese bosses came from Porto to Stamford Bridge but the current Real Madrid manager enjoyed a significantly more successful first season than his understudy has thus far
-
Cartoon of the Day: Has Capello's England resignation set off a managerial merry-go-round?
Goal.com cartoonist Omar Momani gives us his unique take on the football news of the day...
-
Can Luis Suarez repeat Eric Cantona's grand comeback when Liverpool face Manchester United?
The divisive Uruguayan can look to history when he starts against United on Saturday for the first time since receiving an eight-match ban for racially abusing Patrice Evra
-
Poll: Who should partner Wayne Rooney in crucial Manchester United clash with Liverpool?
Chicharito came off the bench to hand Sir Alex Ferguson's side a point against Chelsea on Sunday, and handed the Scot a selection headache ahead of fierce derby game
