The Reds were heavily linked with an £11.6m deal to sign Empoli and Udinese midfielder Piotr Zielinski but the speculation has cooled in recent days.
Jurgen Klopp completed his first signing of the summer transfer window on Tuesday evening after Loris Karius completed a £4.7m transfer from Mainz.
According to Goal.com, the Liverpool manager is ready to raid the Bundesliga again as he targets Monchengladbach star Dahoud to bolster his midfield.
The 20-year-old would reportedly cost the Reds a minimum of £20m following an excellent season for the German side in the Bundesliga and the Champions League.
The Syrian midfielder scored five goals and made eight assists in 32 Bundesliga appearances for Monchengladbach over the course of the campaign.
Dahoud’s former team-mate Granit Xhaka completed a £33m move to Arsenal earlier this week.
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