Despite being named the Reds' player of the season last term, the 24-year-old Brazilian is reportedly seen as an unnecessary expense, and the Argentine could be a cheaper optionhere.
Liverpool are reportedly weighing up a move for Anderlecht midfielder Lucas Biglia as a cut-price replacement for his namesake Lucas Leiva.
Leiva, the Reds’ player of the year last season, is rumoured to be on his way out of the club on loan to balance the books after manager Kenny Dalglish spent big on the likes of Charlie Adam, Jordan Henderson and Stewart Downing.
According to the Daily Mirror, Argentine midfielder Biglia is seen as a cheaper option in the defensive midfield position than the Brazilian, who signed a bumper new contract in March.
The 25-year-old former Independiente man is, it is suggested, keen to play for Liverpool having been sold on the idea by ex-Anfield compatriot Javier Mascherano.
An Argentina international, Biglia took part in this summer’s Copa America tournament, in which Leiva also participated.
The Reds have already agreed to allow striker Milan Jovanovic to depart for Anderlecht.