The left-back has just come to the end of a strong season at Atletico Mineiro and earned his first cap for Brazil earlier this year.
The 22-year-old already has experience in European football from spells with Granada and Udinese and could return during the summer window.
Earlier this week, reports from Brazil revealed Santos had emerged as a potential transfer target for Arsenal, with Hoje Em Dia rating him at around the £7.7million mark.
But according to Globo Esporte, Liverpool are also targeting the Selecao hot shot, who measures in at just 5 foot 8.
The news coincides with reports of the Reds ending their interest in priority left-back target Ben Chilwell, due to Leicester City’s £10million valuation of the 19-year-old.
Along with the Premier League duo, Barcelona, Borussia Dortmund and Valencia are said to be interested in Santos.