Spanish media outlet Sport, as quoted by Sport Witness, is reporting that Liverpool FC want to sign the Spain Under-21 international in the current transfer window.
The same article states that the Reds were initially reluctant to allow Real Madrid to include a buy-back option but Liverpool FC would now be willing to include such a clause.
According to the same story, the Champions League winners are hoping to sell Ceballos in a deal thought to be worth around €50m, including the buy-back clause.
The report goes on to add that Liverpool FC manager Jurgen Klopp is eager to sign Ceballas to add more depth to his squad ahead of the new Premier League season.
However, the story suggests that Liverpool FC could face competition from Tottenham Hotspur for the Spanish midfielder.
Liverpool FC were 2-0 winners against Tottenham Hotspur in the Champions League final in Kiev last month to win the competition for a sixth time.
The Reds finished in second place in the Premier League table last term and a point adrift of champions Manchester City.
Liverpool FC have only signed Sepp van den Berg in the summer transfer window so far.
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