Liverpool are laying the groundwork for a concerted bid to sign Watford attacker Ismaila Sarr in January, Football Insider understands.
The Senegal international, 22, is the subject of strong interest from the Merseysiders as they assess alternative forward options.
A Liverpool source has told Football Insider the club have held early talks about Sarr this window but have stopped short of tabling a bid.
He is regarded as more of a medium-term transfer option, especially if Watford continue to hold out for £40million for their record signing.
Liverpool are unwilling to go that far in the wake of the Covid-19 pandemic that has severely restricted their finances.
Watford begin their Championship campaign against Middlesbrough at Vicarage Road tonight with Sarr still in their ranks.
The 2019-20 relegated club have less need to cash in on the super-quick attacker after selling Abdoulaye Doucoure to Everton earlier this week for £20m.
Liverpool have also shortlisted Adama Traore but Wolves value him in excess of £60m.
Sarr has climbed up their target list due to his extreme pace and ability to provide cutting edge in the final third.
He is able to play on either wing and through the centre of an attacking three.
Sarr signed for Watford in a deal worth around £40m last summer from Rennes.
His debut campaign yielded six goals and six assists from 30 matches in all competitions, including a memorable double in a 3-0 walloping of Liverpool that ended their unbeaten 2019-20 league run.