With Spanish defender Alberto Moreno on the fringes of the first team after Liverpool signed Andrew Robertson and preferred midfielder James Milner in his position last season, the full back could move elsewhere as the Reds seek £15m for the defender.
The Liverpool Echo reports that Watford could snap up the 25-year-old, who impressed against Bayern Munich recently in a friendly. As the left-back position could be even harder to claim after the acquisition of Robertson, the Hornets are considering meeting Liverpool's valuation for the former Sevilla man.
With the two clubs set to face each other in the season opener in the Premier League at Vicarage road, the jury is out on whether Jurgen Klopp will allow the defender to go before the season starts.
Having reportedly rejected an £11m bid from Serie A side Napoli earlier in the summer, it is believed the Reds are holding out for a fee closer to £15m for the Spanish left-back. After his standout performance against last season's Bundesliga winners Bayern Munich, Klopp hinted that he could still have a future at Anfield.
"If he plays like he did today then yeah (he has a chance of playing)," said the Liverpool manager following the Bayern Munich tie. “It was a really good game by Alberto. That's why we kept him playing every second.
“The players decide themselves how many games they play.”
Nevertheless, it is highly unlikely Moreno will have a regular starting place in the first team considering they have purchased further competition for a place on the left side as well as Milner's excellent displays in the position last year.
Newly appointed Watford boss Marco Silva has already begun building a squad that can challenge for a top ten place in the Premier League, with Moreno a possible excellent addition to the squad.