The report claims that in-bound City manager Pep Guardiola has set his sights on Gundogan and has requested that the board make an offer.
Gundogan would replace Yaya Toure if he were to make the move. Guardiola and Toure do not exactly see eye to eye after falling out at Barcelona and the Ivory Coast international is likely to part ways with the club after a six-year stay once the Spanish manager is appointed.
City have reportedly held talks with Gundogan’s agent but there has been no official confirmation of any deal being in place.
Reds boss Jurgen Klopp has of course previously worked with the highly sought after midfielder during his time in charge of Dortmund.
Gundogan was heavily linked with a move away from Dortmund last summer but instead signed a one-year extension.
The Germany international’s current deal expires in July 2017 and he is expected to leave at the end of the season.