The Cameroon international has struggled for opportunities this season after Joe Gomez emerged as Virgil van Dijk’s first-choice partner.
Matip has started only once in the Premier League this term and is set to enter the final 18 months of his Anfield contract.
Dejan Lovren also looks to be ahead in Jurgen Klopp’s pecking order.
And reports from Turkey claim new Cottagers boss Claudio Ranieri will rival European giants Fenerbahce for Matip’s signature.
If the former Schalke man quits Merseyside in January, Liverpool are sure to move for an immediate replacement.
Does Jurgen Klopp need to bring in January reinforcements?
LIVERPOOL find themselves in the mix for the title after picking up 30 points from their first 12 games.
They are two points behind leaders Man City and two ahead of Chelsea, with all three still unbeaten this season.
Liverpool boast the joint-best defence with City, conceding just five goals.
But they have scored 13 less than their rivals and may need to find a solution if they are to keep pace with Pep Guardiola’s men.
Roberto Firmino has netted just twice in the Premier League this term, while Mo Salah is unlikely to match last year’s 32-goal haul after hitting the target only six times so far.
And a new forward would be ideal for Jurgen Klopp, with Lyon’s Nabil Fekir and Barcelona's Ousmane Dembele reported to be targets.
A central midfielder with a talent for finding the back of the net could also bring Liverpool to the next level, with the club's current options bagging just three goals between them this term.
Sergej Milinkovic-Savic would be an excellent signing for the Reds after bagging 12 Serie A goals for Lazio last season, but he is sure to cost a pretty penny after recently signing a new contract.
And reports claim Klopp is already weighing up a move for Ajax youngster Matthijs de Ligt.
The Netherlands international is rated as one of Europe’s finest prodigies, and international teammate Van Dijk reckons he’d be a perfect fit for Klopp’s title chasers.
Van Dijk said: “He is already very far, especially at that age. A good defender, good boy, calm, knows what he wants and hopefully he makes the right choice in his next step.
“He will be on the list, because they have good enough scouts at the club. If they need my opinion at Liverpool, I’ll give it.”
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