The teenage winger made a blistering start to the Premier League season, becoming a first team regular.
However, with the arrival of Philippe Coutinho, and a drop in form, the England international has been relegated to a fringe role, with manager Brendan Rodgers keen to rest his starlet.
The Northern Irishman has now offered Sterling the chance to spend the end of the season in the second tier, playing regular football in a lower pressure environment.
Bolton, Brighton and Cardiff are said to be in the race, after Rodgers recommended the 18-year-old to them.
Blackpool are also an option, and Liverpool could look to use a loan switch as a potential sweetener in a move for Tom Ince.
No deal has been formally agreed, but it’s likely that many of the promotion chasing teams will be keen to tie up an agreement.
Sterling penned a new contract with Anfield club in November, ending speculation regarding a potential move to Manchester City.
Another Liverpool youngster who could make a similar move is Suso, who, like Sterling, has drifted out of the first-team in recent months.