According to a report by Spanish outlet Diario Gol, Ceballos is seeking more first-team action after being stuck down the pecking order behind the likes of Toni Kroos, Luka Modric and Casemiro at the Santiago Bernabeu, since his summer arrival from Real Betis.
The 21-year-old, who only joined Real Madrid six months ago, is reportedly already looking for a way out after making just ten appearances in all competitions this season.
With the World Cup in Russia only five months away, Ceballos wants regular game time to boost his chances of making the Spanish squad.
It was reported earlier in December that AC Milan were looking to snap up the youngster, but Liverpool is now apparently his preferred destination.
As rumours go, I’m liking that Dani Ceballos link. Remember him dominating for Spain U21s.
— Reece (@rlwLFC) January 4, 2018
Liverpool are likely to have a browse in the transfer market this month if Philippe Coutinho’s move to Barcelona goes through.
Furthermore, if Emre Can secures his rumoured move to Juventus at the end of the season, Ceballos could be a welcome addition to bolster their midfield in the long-term.