Liverpool have reportedly identified Lyon midfielder Houssem Aouar as a potential signing.

The Merseyside giants made a number of significant additions last summer, and although Jurgen Klopp's side have closed the gap on champions Manchester City, they remain outsiders for this season's top-flight crown.

City boss Pep Guardiola has suggested that he is an admirer of Aouar, and according to Telefoot, Liverpool have opted to join their domestic rivals in the race for the 20-year-old's signature.

The Frenchman has already established himself as one of Lyon's key players, with five goals and four assists coming from 20 appearances in Ligue 1 and the Champions League this season.

Aouar still has just over four-and-a-half years remaining on his contract, but that is unlikely to stop the likes of City and Liverpool from making big-money offers should they decide to firm up their interest.