After dropping out of the Reds’ first-team last season on the back of a number of shaky displays, the Slovakian enforcer has returned to the starting XI this term and been one of the club’s most consistent performers.
Injuries have prevented Brendan Rodgers from fielding a set backline for much of the campaign, but Skrtel has been an ever present as the Merseysiders look to make a surprise title push.
His form has alerted City boss Manuel Pellegrini, who is keen to add to his defensive ranks later this year.
With Joleon Lescott set to leave and both Matija Nastasic and Martin Demichelis having failed to convince, Skrtel is seen as an ideal partner for inspirational captain Vincent Kompany.
Liverpool were close to selling Skrtel last summer, but Rodgers has since backtracked and now values him as one of his key players.
But much depends on the Anfielders’ ability to finish in the top four, with Champions League football at City likely to tempt the tough-tackling star.