The Moroccan, who has been linked with a move to the Merseyside club, has admitted that playing at Anfield would be fantastic, though he is currently happy at Fiorentina
The Morocco international, formerly of Tottenham, has only started two league games since joining Fiorentina from Ajax last summer and has been heavily linked with a move to Brendan Rodgers' side.
The 28-year-old, though was eager to praise Liverpool as a club, was also keen to convey how happy he is in Italy and suggested that the purported move was most likely "paper talk".
"Being linked with Liverpool is flattering but I really think it is paper talk so far," he told Sky Sports.
"Liverpool are a great club and to play there in a legendary stadium like Anfield would be fantastic and a dream.
"But I am at Fiorentina and I'm happy."
El Hamdaoui's only previous experience of playing in English football was a nine-game loan spell with Derby in the 2005-06 season.