The former Real Madrid youngster has established himself as a key member of the Los Che squad since Juan Antonio Pizzi took over from Miroslav Djukic over the festive period last year.
Manager Brendan Rodgers recently admitted that he was looking for signings that would take his team to the “next level” and it is understood the Northern Irishman is already planning his summer dealings.
With the second-placed Reds likely to be competing in the Champions League next term, the squad will be in line for considerable investment, and Parejo has been earmarked as a big-money signing.
The 24-year-old will command a fee of around £20m, but the price-tag won’t deter Rodgers, who feels Parejo can add some dynamism to his midfield ranks.
Liverpool have been linked with the likes of Hoffenheim’s Roberto Firmino and Benfica’s Nicolas Gaitan.
The five-time European Cup winners have also been linked with a deal for Spurs’ Jan Vertonghen while another report claimed Steven Caulker was on the club’s shortlist.
Rodgers is expected to delve into the transfer market for a left-back this summer, with loanee Aly Cissokho likely to be sent back to Valencia having failed to make the grade at Anfield.
Written by Steve Milne