Internazionale technical director Piero Ausilio, midfielder Mateo Kovacic and three Liverpool directors have met to negotiate the transfer of the 21-year-old to Anfield, Calciomercato.com reports.
The Nerazzurri are ready to sell one of their best players in order to strengthen their squad with new signings during the summer transfer window.
The Italians made it clear that they will only sell the Croatian, who has a contract until 2019, for £21m.
Ross County sign Scott Fox
Ross County have signed goalkeeper Scott Fox from Partick Thistle. Boss Jim McIntyre said: "I'm delighted to add a goalkeeper of Scott's calibre to the squad.
"He's a player I've admired for a long time - very much a modern-day keeper.
"He's good with the back pass, kicks the ball well and has a safe pair of hands."