Saka has impressed after being fast-tracked into the Arsenal team this season after leapfrogging Sead Kolasinac and the injured Kieran Tierney.
The 18-year-old, who can play anywhere down the left sie of the pitch, has made 12 Premier League starts among 29 appearances in total this season, and has also chipped in with nine assists.
But he is about to enter the final year of his contract at the Emirates, and his eye-catching form has alerted Liverpool, according to Football Insider.
However, the publication reports that Arsenal are trying to tie him down to a new five-year deal - and plan to hold him to his current contract even if he does not commit beyond next season.
Talks with Saka have been on hold during the lockdown, and the Gunners made the teenager an offer earlier this season.
He started nine of Arsenal's last 11 league games before the season was suspended due to the coronavirus pandemic, and manager Mikel Arteta will not want to lose the England under-19 international this summer.
Saka appears to fit the profile of player Liverpool are looking for, with the Reds focusing on emerging talent rather than big-money signings.
That said, with his CV having been boosted by his Premier League experience this season, Saka would cost more than most 18-year-olds, with Transfermarkt valuing him at £18million.
If he were to join Liverpool, he would be groomed as Andy Robertson's successor - although he would have to bide his time to earn a first-team place with the 26-year-old Scot regarded as one of the world's best attacking left-backs.
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