Roy Hodgson has made no secret of the fact that he would like to bring in more British players to Anfield, with Reds old boy Crouch mentioned this summer as a potential target.
Harry Redknapp is struggling to reinforce his squad and as he seeks another frontman, it is understood he is willing to let the England international move on in order to fund his own transfer activity.
With Javier Mascherano likely to move on before the transfer window closes, Liverpool will have the funds to re-sign Crouch - who scored 22 goals in 85 appearances during his time with the Reds.
Hodgson's former club Fulham are also said to be interested in the striker, who turned down a move to Craven Cottage last year, but Liverpool are leading the race for his signature.
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