The Sun is reporting that the Reds are hoping to sign the 16-year-old from their Premier League rivals as Jurgen Klopp looks to bolster his squad this summer.
The same report states that the teenager, who has been with the Citizens for six years, once had a trial at Liverpool FC but ended up joining Manchester City instead.
However, it seems that the Reds are now close to completing a move for the teenager in the summer transfer window.
The same report says that Liverpool FC will be able to make a move to sign Duncan after he turns 17 in June.
It is also claimed that the Reds will have to pay a small compensation fee of around £200,000 to secure the services of the teenager this summer.
Meanwhile, Liverpool FC are preparing for their trip to West Bromwich Albion in the Premier League next weekend.
The Reds are currently in third place in the Premier League table after their impressive 3-0 win over Bournemouth at Anfield on Saturday.
Liverpool FC will take on AS Roma over two legs in the Champions League semi-finals later this month.
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