The Daily Mirror is reporting that the Merseyside outfit are targeting a move for the midfielder as the 22-year-old looks set to leave his boyhood club this summer.
However, despite Liverpool FC showing a significant interest in Grealish, it is Tottenham Hotspur who are said to be the favourites to sign the midfielder this summer.
Aston Villa are known to be struggling for funds, and they are said to have halved their original asking price of £40m.
Liverpool FC are thought to still be on the lookout for a number of signings this summer as Jurgen Klopp looks to assemble a team that he feels will be able to challenge for the Premier League title next season.
The Reds ended up in fourth place in the Premier League table and without a trophy last term after they missed out on winning the Champions League following their final defeat by Real Madrid.
They have so far made one official signing this summer after having completed a deal for Brazilian midfielder Fabinho from Monaco.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news