The 22-year-old full-back has been heavily linked with a move to Serie 'A' in recent weeks, with reports emanating earlier today that Ghoulam had agreed personal terms with the Italian club.
However, Brendan Rodgers could be about to hijack Torino's bid to sign the Algeria international, as Liverpool step up their search for defensive reinforcements at Anfield this summer.
With Jose Enrique the only recognised senior left-back at the Merseyside club at the moment, Glen Johnson was forced to play out of position on the left side of the Liverpool defence last season.
Rodgers wants to add competition for the former Newcastle United defender before the transfer window closes on September 1, and sees Ghoulam as a bright young prospect capable of pushing for a place in the first-team.
The Algerian made 26 Ligue 1 appearances for Saint Etienne last season, and has continued to impress in his full-back role since making his debut at Stade Geoffroy-Guichard in 2010.
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