The 29-year-old only swapped clubs in January as he left Getafe for Espanyol, but the Catalan outfit were officially relegated to the Segunda Division courtesy of their 1-0 loss at Barcelona last week.
Liverpool are expected to be in the market for a new central defender this summer with Dejan Lovren likely to move on in search of pastures new.
According to Mundo Deportivo, the Premier League champions are very much in the hunt for Cabrera, who has scored three times in 35 La Liga appearances during the 2019-20 campaign.
The report claims that there is a clause in the South American's contract allowing him to leave on loan this summer following the club's relegation, with Liverpool only needing to cover his £2.7m-a-season wages.
Cabrera has previously played for Atletico Madrid and Real Madrid Castilla, while he has been capped at Under-20 level by Uruguay.