Liverpool are chasing Universidad de Chile striker Eduardo Vargas according to the Daily Mirror.
The 22-year-old South American sensation has attracted interest from a number of Barclays Premier League clubs, but the Reds have now emerged as favourites for the in-demand forward's signature.
Liverpool manager Kenny Dalglish is believed to have sent a top scout to watch Vargas in action last weekend, as he weighs up an attempt to bring the player to Anfield in January.
Vargas' camp claim they are now in talks with an unnamed club about a potential transfer in the New Year - with £15million being touted as the figure needed to make a move possible.
Dalglish spent big on strikers last January, bringing Luis Suarez and Andy Carroll to Anfield for a combined fee in excess of £55million - bankrolled by Liverpool owners FSG.
However, England striker Carroll has failed to make a significant impact on Merseyside, and with a lack of depth in the position, a move for another forward is expected from the Liverpool boss in 2012.
The Chilean international is poised to become the latest player in a growing contingent of South American stars at Anfield and could be the answer to the club's lack of striking options.