Talks between Liverpool and Jurgen Klopp's representatives have progressed well as the club look to replace manager Brendan Rodgers.
The former Borussia Dortmund coach is favourite to take over from the Northern Irishman, with ex-Chelsea boss Carlo Ancelotti a strong contender.
German Klopp, 48, is understood to be open to the idea of a move.
The club's owners intend to have a new manager in place for the Premier League trip to Tottenham on 17 October.
Although talks have been positive, an appointment is not imminent.
Klopp is understood to have spoken to former Liverpool and Germany midfielder Dietmar Hamann about the club, the city and the fans.
He has been out of work since leaving Dortmund, with whom he won two German Bundesliga titles, in the summer.
Former Germany midfielder Stefan Effenberg believes Klopp will be back coaching "very, very soon" and thinks he is suited to Anfield.
Effenberg, who played 35 times for Germany and won the World Cup in 1990, is a good friend of Klopp and told BBC World Service Sport: "He gave me this answer a couple of weeks ago. He said, 'I'm ready for a team that's not on the highest level, to create something, to build something up'. This could be Liverpool, right?"
Speaking at the ASPIRE4SPORT conference in Berlin, he added: "Liverpool is one of the greatest atmospheres. It's pretty much the same as Dortmund. The fans stay with everything behind the club and this is what Jurgen Klopp likes and what he needs.
"So maybe, very soon, we'll hear something from Jurgen Klopp, to make a decision, maybe, for Liverpool."
Colin Bell, who worked with Klopp at German club Mainz between 2001 and 2005 told BBC World Service Sport that the "charismatic" 48-year-old "lives his football".
"He's not an actor in this sense," said Bell. "He's authentic, he can show his emotions - you can see that on the sidelines when he gets upset with referees or his players.
"Klopp has this reputation in Germany as happy and easy to get along with, but he's also a very hard worker on the pitch and if the players do not please him or do not do exactly what he wants them to do then he can get stuck into them which is exactly what players need."
Source: BBC Sport
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