The Reds are understood to be in the market for reinforcements in the centre of the park following recent comments from manager Jurgen Klopp.
Speaking last week, he said: “We are looking for it and if it is the right player we need him and if it is not the right player we don’t need him.
“[Our need] changed of course. I know we have had this discussion since it all started and I am the one who said we don’t need a midfielder and you were all right and I was wrong. That’s the situation.
“But the specific point doesn’t change – we will do something but it has to be the right one.”
Since then, it has been reported that the Reds are considering a £42 million swoop for Caicedo, who has impressed immensely in the early stages of the new Premier League campaign.
The Ecuador international has started all five of Brighton’s matches so far, with the Seagulls currently sitting fourth in the table.
But past quotes from the player himself could hint that he would prefer a move to one of Liverpool’s biggest rivals.
What has Caicedo said about his future?
While Caicedo hasn’t addressed his future at Brighton overtly, the midfielder has previously confessed his love for Manchester United.
Speaking previously, as quoted by the Express, the Albion star said: “As a midfielder, Pogba was always my favourite player.
“Manchester United was always my team because of Pogba and before that Valencia. He was a winger, then a right-back, and was strong, fast and very intelligent.
“He was the perfect player for the Premier League and if I can go on and enjoy a career like him, then it will be a dream.”
The Athletic previously reported that United “stepped away” from a £4.5 million deal to take Caicedo to Old Trafford prior to him joining Brighton.
What have Brighton said about Caicedo’s future?
Brighton manager Graham Potter has made it clear that he believes Caicedo will stay at the Amex Stadium this summer - especially if Liverpool’s valuation of the player is indeed £42 million.
Speaking earlier in the week, he said: “In football you never know, but we are quite calm and confident.
“You’d probably get his boots for that from the chairman - maybe! £100 million? They can try.
“It doesn’t surprise me that people are looking at him because he is playing at a fantastic level.
“As soon as you do research on him you realise he is a top kid, great person, young, playing in the Premier League, has all the attributes to play at the very, very highest level.”
Likewise, Albion chief executive Paul Barber has reasserted Potter’s comments on the 20-year-old.
Speaking to talkSPORT, he said: Barber said: “As Graham said, that’s only going to get his boots!
“Moises Caicedo has done well, but he’s still a really young player and you know better than anyone that with young players form can be inconsistent and we don’t want the kind of pressure on Moises that these kinds of headlines can create.
“That said, he’s a very level-headed young man and more than capable of dealing with it, in our opinion.
“He’s settled into the Premier League fantastically and potentially he’s got a World Cup to look forward to as well, so it’s a really good time for Moises and we’re delighted to have him.”