Manager Brendan Rodgers is hoping to agree a loan move for the 22-year-old, who he sees as the ideal cover at full back for Jose Enrique.
Whilst the Spaniard is set to remain first choice at Anfield, Rodgers has openly said he is looking for back up in the left back position, especially since Enrique missed several games last season with various injury troubles.
Melgarejo is also capable of playing in a more attacking position, something that also appeals to Rodgers who has often said he is looking for versatile players to add to his squad.
The Reds boss had earlier identified Valencia full back Aly Cissokho as his first choice signing, but ran into problems concerning the player’s wage demands.
Melgarejo was a regular starter for Benfica last season, and impressed in the side that reached the Europa League final, in which he also played against Chelsea.
Rodgers is looking to offer an initial one-year-loan deal, with a view to signing the player on a permanent contract next summer.
The one stumbling block could be securing a work permit for the Paraguayan, although the Reds are confident this won’t prove an issue with the player having recently made his debut for the national side.
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