Solanke is yet to make a single Premier League appearance for Chelsea under Antonio Conte this season.
The 19-year-old is billed as one of the Blues' stars of the future after impressing at Dutch side Vitesse Arnhem last term.
Chelsea want to tie him down to a new contract but are yet to persuade him to stay at Stamford Bridge.
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Dominic Solanke has reportedly told friends he's ready to join Liverpool
Dominic Solanke is highly-rated in the Chelsea academy
The youngster wants £50,000 a week to stay at the club but the Blues are reluctant to meet his demands.
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And though Liverpool won't cave in either, the Reds are prepared to offer him first-team football.
Daniel Sturridge could be offloaded in the summer
Jurgen Klopp is likely to sanction the sale of Daniel Sturridge in the summer and Solanke could be his replacement.
However, though he would sign on a free transfer in the summer, the deal won't come cheap.
Liverpool could have to pay up to £8million in compensation via a tribunal after doing the same when they signed Danny Ings from Burnley in 2015.