The sports radio station states that the Premier League duo have been placed on ‘red alert’ after the 25-year-old confirmed that he will not will not sign a new contract.
TalkSport go onto state that Manchester City are also interested in securing the Germany international’s services.
Gundogan has been linked with a move to Anfield ever since the appointment of Jugen Klopp as manager. Klopp does of course know Gundogan well from his time managing the Dortmund prior to taking charge of Liverpool
Gundogan is tied into a contract at Dortmund until 2017 after signing a contract extension at the start of the season.
The midfield playmaker has six assists and three goals in 32 appearances for Liverpool this season.
Dortmund sit in second place in the Bundesliga with 48 points in 21 games. The Bundesliga giants take on Porto in the UEFA Champions league this week.