The Merseyside giants are eyeing a new defensive midfielder this summer in order to provide competition to Wataru Endo .

Varela has been earmarked as the prime transfer target and reports claim that he is being closely watched by their scouts.

The Reds are currently in advanced negotiations with Sporting manager Ruben Amorim over replacing Jurgen Klopp at the helm.

Amorim has watched Varela in close quarters in the Primeira Liga and he may have recommended his signing to the board.

Liverpool may still need to pay a premium fee for his services with Porto said to value him in the region of €60 million.

Aside from a holding midfielder, the Reds could also invest on a wide player who could succeed Mohamed Salah in future.

Nico Williams is being closely monitored at the moment, but the Reds face fierce competition with Chelsea and Spurs also keen.

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