Jurgen Klopp is looking to bolster his midfield options this summer as James Milner, Naby Keita and Alex Oxlade-Chamberlain are all leaving the club when their contracts expire at the end of this month.
The Reds will also see Arthur return to parent club Juventus after enduring a miserable injury-plagued 2022-23 campaign on loan at Anfield, featuring for just 13 minutes in one Champions League match.
Kone, who is primarily a deep-lying midfielder, has established himself as an integral first-team member at Monchengladbach since arriving at the club from Toulouse for €9m (£7.9m) in January 2021.
The 22-year-old has made a total of 60 appearances for the German side in all competitions, including 30 starts in the Bundesliga this season.
Kone is under contract at Borussia-Park until the summer of 2025, but the youngster faces an uncertain future at the club amid interest from a number of top European clubs.
According to journalist Fabrizio Romano, Liverpool held talks with Monchengladbach last week over a possible deal for Kone and they have been informed that the midfielder could be available for a fee between €35m (£30m) and €40m (£34.4m).
Romano adds that Monchengladbach are willing to part ways with the France Under-21 international this summer if they receive an offer that matches their valuation.
Earlier this year, Kone stated that he was not paying attention to rumours about his future, but admitted that his representatives are 'proud' to learn of interest from top European clubs.
Liverpool are also understood to have stepped up their pursuit of Brighton & Hove Albion midfielder Alexis Mac Allister with a recent report claiming that they are planning to finalise his transfer to Anfield next week.
The 24-year-old is widely expected to depart the Amex Stadium this summer after head coach Roberto De Zerbi recently conceded that the World Cup winner may have played his final game for the Seagulls.
Newly-appointed sporting director Jorge Schmadtke, who joined the Reds on Tuesday, is said to be taking care of the club's transfer dealings and will work closely with Klopp throughout the summer. body check tags ::