Liverpool failed with a £30 million bid for Samuel Chukwueze during the January transfer window, according to express.co.uk.
Quoting France Football, the English publication said Villarreal rejected the offer from Liverpool in January.
Chukwueze has taken Europe by storm since he joined Villarreal two seasons ago.
The 20-year-old Nigerian, who is arted as one of the most promising youngsters in world football, has scored four goals and provided four assists this season.
Chukwueze, who has also received bid from Chelsea, is reported to have a £55 million release clause in his current contract, that expires in 2023.
According to the report, Liverpool is expected to come back in the summer for the 2015 U-17 World Cup winner, who has been likened top Dutch great, Arjen Robben.
Apart from Chukwueze, Liverpool are also interested in RB Leipzig’s Timo Werner, who is likely to join them in the summer transfer window.
A string of clubs have been linked with the Germany international, including Manchester United, Chelsea, Bayern Munich and Real Madrid, bujt reports say his preferred move is to Liverpool.
Meanwhile, Real Madrid are keeping tabs on Raheem Sterling ahead of a possible summer move for the England international, according to reports.
The 25 year-old Manchester City winger, who is currently out with a hamstring injury, is under contract until 2023 and Los Blancos are weighing up their options about trying to sign the player at the end of the season.
According to The Telegraph, Real are closely watching whether Sterling will sign a fresh long-term deal with City.
And if no new agreement is agreed between the two parties, Real could then test City’s resolve with a bid for the winger, who currently earns £300,000 per week, in the summer.