Douglas is out of contract at the end of the season and is not expected to sign a deal at FC Twente, leaving him able to talk to clubs about a free move when the transfer window opens.
Newcastle were close to agreeing a £4million for the Brazilian last summer but the central defender opted to stay in Holland for one more season to allow his contract to run down.
Liverpool are desperate to replace the retiring Jamie Carragher and have been linked with a whole host of defenders in recent weeks including Swansea’s Ashley Williams and Tottenham’s Steven Caulker.
The Reds will not splash the cash this summer, unlike recent years, and the free signing of Douglas would be the perfect switch for the club and the player.
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