Southampton have set a price of £50m for Romeo Lavia, having rejected Liverpool’s opening bid of £37m for the 19-year-old.
The offer is expected to bring a move from Chelsea, as they seek to add at least one more midfielder.
Liverpool have made a move after agreeing sales of Jordan Henderson and Fabinho to the Saudi Pro League, with Jurgen Klopp keen to add more depth in midfield.
Lavia has been seen as one of the most attractive options in the window, due to his burgeoning quality midfield at the age of 19 and a relatively cheap price.
That has also ensured both Arsenal and Manchester United have been looking at the Southampton player, with the former having previously been seen as favourites to sign him.
Liverpool have since moved ahead, however, as Mikel Arteta is himself dependent on sales.
Southampton have so far proved steadfast in their insistence Lavia is only available for £50m, but the view in the market is a deal for £45m could be struck.
Liverpool are set to improve their offer after Henderson’s controversial move to Saudi Arabian side Al-Ettifaq was completed on Thursday.
Fabinho, who has been linked with Al Ittihad, is expected to follow the former Liverpool captain.