Sources with a close understanding of the situation have informed CaughtOffside that Nunez is greatly admired by Atletico Madrid manager Diego Simeone as he looks to make changes to his attack.
The Spanish giants signed Julian Alvarez from Manchester City in a big move last summer, but there is now some uncertainty about the future of Antoine Griezmann.
This has led Atletico to look at Nunez, as well as at Crystal Palace striker Jean-Philippe Mateta and Wolves' Fabio Silva, who is currently on loan at Las Palmas.
Nunez is a realistic option, however, as Liverpool are open to selling the Uruguay international after his inconsistent form during his time at Anfield.
Darwin Nunez transfer could make sense for all parties
Nunez impressed during his time at former club Benfica, and it may be that he can still revive his career after struggling in the Premier League.
The 25-year-old might find that La Liga is a better fit for him, while LFC will also surely be happy to offload the player and make changes of their own up front.
Arne Slot has been publicly critical of Nunez in recent times, and it's perhaps a signal that he wants the board to get rid of him and sign someone else.
Even if Nunez has had some decent moments in a Liverpool shirt, he's not been consistent enough and has surely run out of chances now.
Atletico could be a better fit for him, but it will also be interesting to see how much Simeone's side also consider talents like Mateta and Silva.
Wolves have loaned Silva out a few times now so might be willing to sell, whereas Palace will surely be desperate to keep hold of Mateta after his superb recent form.
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