The league-leaders have sent chiefs to watch the midfielder's last six games and the Nottingham Forest ace has been earning rave reviews from their scouts.
Elliot Anderson is wanted by Liverpool
Forest, who are enjoying a brilliant season, signed the 22-year-old from Newcastle in the summer and are under no pressure to sell the midfielder.
But Liverpool have now identified the player as a target and will want to be at the front of the queue if he becomes available at the end of the season.
Anderson's switch from Newcastle to Forest for a reported £35m took many by surprise.
But he was determined to move to the City Ground where he was promised regular first-team action amid the Toon's need to sell a homegrown player due to Profit and Sustainability Rules.
And he's grabbed the opportunity and become a key part in Forest's remarkable first-half of the season.
Before the 2-0 win over Everton on Saturday that took them up to third in the league, he said the team have their eyes on European qualification.
Anderson revealed: "Everyone dreams. We have a bit of banter every now and then and we chat about it.
"We're on some great momentum at the moment - it's four in a row and everyone is buzzing.
"Obviously, it is brilliant to be there but as everyone says we have to take it game by game.
"On paper, we've got some great players in the squad. It's all clicking. Everyone is full of confidence and we're going in the right direction."
Anderson hasn't just caught the eye of Liverpool. He has also hugely impressed Alan Shearer.
Both played for Wallsend Boys Club as youngsters before being picked up by the Toon.
Speaking earlier this week, Shearer said: "What a season he's having. It's been a great move for him, he's got an energy about him, a class about him."
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