Borussia Dortmund are reportedly keen to sign Liverpool's loanee midfielder for a second time.
The Turkish international has signed on with the Reds from Spanish champions Real Madrid until the end of the current season.
It is understood that Madrid would be happy to part with 24-year-old on a permanent basis in the summer, with Liverpool manager Brendan Rodgers said to be eager to conclude a deal.
However, they will face competition from his former club Dortmund, according to talkSPORT.
The report has claimed that the German champions have already held transfer talks with Madrid regarding the attacker.
Sahin made over 150 appearances during his first stint with Dortmund, which ended in the summer of 2011.