The defender's agent revealed the Italian giants and the Premier League side are interested in the player, but says neither side have put in firm offers yet
The 24-year-old is also believed to have courted the interest of some of Europe's other leading clubs including Juventus, Benfica, Manchester United and Valencia.
However, his agent, Guilliano Aranda, says Italian giants Milan have stolen a march on their rivals by establishing contact with the Brazilian club, but added that the Reds have also expressed interest.
"I believe there has been contact between the clubs and the Rossoneri’s interest in Dede is concrete, but at the moment they have not spoken to me directly. Vasco are still awaiting Milan’s offer," Aranda told Tuttomercatoweb.
"There is interest from Liverpool. But there have been no talks between me and that club," added Aranda.
Asked whether Dede held a preference on a prospective destination, Aranda remained diplomatic, but did not disguise his client's admiration for the Serie A outfit.
"At the moment Dede is not thinking about a transfer. He is happy in Brazil and giving his all to earn a call-up for the Confederations Cup," he added.
"Milan are certainly a fantastic club and among the top sides in the world, so playing with the Rossoneri jersey would be an honour for the lad."
It is understood Milan are viewing Dede as a potential replacement for Thiago Silva, who left for Paris Saint-Germain last summer.