According to WalesOnline, the Reds are showing a keen interest in Etheridge, but are yet to make a formal approach for the player.
This comes just after Aston Villa were widely reported to have had an £8million bid for the 'keeper turned down.
Villa are thought to be preparing an improved offer.
Fulham and West Ham United are also rumoured to be interested in the Phillipines international.
Etheridge recently commented on the prospect of sitting on the bench at a Premier League club by Phillipino press.
"You’re one step away, you’re one injury away, a couple of training sessions away from getting that No. 1 shirt, so there are how many ways you must look at it.
"You sit on the bench in the Premier League for one week, you could be playing for the rest of the season if the No. 1 at that time had a bad game."
Whilst Liverpool's enquiry could turn his head, it's thought that Etheridge's preffered destination is Aston Villa because he would recieve more regular game-time.
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