The Daily Express, Daily Mirror and The Sun all report the story, saying that the 23-year-old England (and Great Britain) forward is the top target at Anfield as the club desperately try to bring in some back-up for one-man strikeforce Luis Suarez.
Chelsea are reportedly happy to offload the player to try and offset the cost of buying Radamel Falcao from Atletico Madrid. The Colombian star is expected to cost almost £50m, the Express claims.
The Sun adds that Reds boss Brendan Rodgers is also keen on re-signing Tom Ince, son of former England and Manchester United great Paul Ince. Ince Jr was on the books at Anfield until being released 18 months ago, but has since gone on to impress at Blackpool.
Chelsea get plenty of coverage in the papers ahead of the Champions League clash against Juventus, with most papers leading on the news that Roberto di Matteo will drop Fernando Torres and Eden Hazard for the must-win match; the "£80m gamble", as the Daily Star calls it.
The most eye-catching headline - though the flimsiest story - is in the Daily Mail, which claims that Roman Abramovich has decided he will "stop at nothing" to get Pep Guardiola in to replace Di Matteo if he decides to axe his manager.
Former Barcelona boss Guardiola has hinted that he would be keen to come on board in the summer but insisted that he will not cut his New York sabbatical year short. but the Mail makes a seemingly groundless assertion that Abramovich will do his level best to talk his top target around.
Mark Hughes has reportedly received a stay of execution at QPR, the Sun claims, and the Daily Mirror reports that he is seemingly so confident of retaining his position that he is already looking to the January transfer market.
The Welshman apparently has his eyes set on Genoa's Swedish international Andreas Granqvist, a £4.5m-rated defender who is said to be keen to leave Italy in the new year. Newcastle and Liverpool are also said to be keen.
The Guardian reports that Theo Walcott is considering signing a pre-contract agreement in January with one of several European clubs interested in his services. The Arsenal winger cannot sign such a deal with a Premier League club, but is free to pledge his future to an overseas side should contract negotiations fail at the Emirates.
And finally, several newspapers run stories based around Roy Hodgson's suggestion that England might bring in a sports psychologist to help the national side deal with penalty shootouts. "You need players who have that cold streak like many golfers or tennis players," Hodgson said.
The golf analogy seems sound when you think of the need for accuracy and power under pressure in a dead ball situation, though we'd like to see Rory McIlroy spank a driver down the fairway after having run his spikes off for two hours rather than sauntered round a field with someone else carrying his clubs for him.