The 22 year old Uruguayan international has been in spectacular form over the past 12 months and he would be an exceptional long term signing for the Reds.
Liverpool are expected to lose star forward Sadio Mane this summer and Bayern Munich are interested in signing the Senegalese international.
Although the 30-year-old is a wide forward and Nunez is more of a centre forward, the 22-year-old could be a quality replacement.
Liverpool have already signed a quality winger in Luis Diaz earlier this year and bringing in a quality goal scorer should be their top priority this summer.
The Reds already have players like Diogo Jota and Mohamed Salah who can operate in the wide areas. However, striker Roberto Firmino has regressed significantly over the last few seasons and Jurgen Klopp needs to bring in a more reliable goalscorer.
According to the latest reports, the Reds are prepared to pay a fee of around €100m to sign Nunez from Benfica.
However, they are not the only club looking to sign the talented forward and another European club is reportedly looking to pay more than Liverpool in order to sign the player.
However, the report states that the striker wants to play under Jurgen Klopp and that should give Liverpool an edge in the transfer chase.
It will be interesting to see if Liverpool follow up on their interest and submit a concrete bid in the coming days.
It is clear that Liverpool will have to shatter the transfer record in order to sign the talented young forward who scored 34 goals across all competitions last season.
The 22-year-old has the potential to develop into a world-class player under the management of Klopp in Premier League, and he certainly has the ability to justify the massive transfer fee in the long run.