Jurgen Klopp is planning a mass overhaul of his squad in the summer having failed to sign anyone last month.
His decision not to bolster his squad in January has proven costly with Liverpool failing to win a league game in 2017.
And he believes a move for Leicester’s Gray would be an ideal addition to his squad in the next transfer window, the Daily Star claim.
Demarai Gray is attracting interest from Liverpool
Liverpool training ahead of Tottenham clash
Thu, February 9, 2017
Click through the gallery for the best snaps of Liverpool in traning
Liverpool FC via Getty Images
1 of 11
Click through the gallery for the best snaps of Liverpool in training
The report suggests the Reds have been keeping tabs on the talented winger since his time at Birmingham.
Gray only signed for the Foxes just over 12 months ago and played a part in Leicester’s historic Premier League winning campaign last time out.
But with Claudio Ranieri’s men struggling for form this time round, Liverpool are hoping to offer him a way out with a move to Anfield.
Get Quotes on Home Insurance
Liverpool have been keeping tabs on Demarai Gray since his Birmingham days
Jurgen Klopp is a big fan of Demarai Gray
The report suggests it was Klopp’s decision not to dip into the transfer market at the turn of the year with his preferred targets not available.
However, he is keen to go all out and please Liverpool’s fans with some big-name signings in the summer, with the Daily Star suggesting there could be as many as five new arrivals.
Borussia Dortmund striker Pierre-Emerick Aubameyang and Manchester City’s Joe Hart have been linked with switches to Liverpool in recent weeks.