The Swansea City defender, who is rated at £8 million, has been in impressive form for the Liberty Stadium-based side this season and that has led to glances from the Premier League’s big boys.
Brendan Rodgers want a reunion with the 28-year-old at Anfield in order to strengthen his defensive options that currently comprise Daniel Agger, Martin Skrtel, Jamie Carragher and Sebastian Coates.
Meanwhile, Gunners boss Arsene Wenger is keen on the defender as solid back up to his first choice pairing of Per Mertesacker and Thomas Vermaelen and he has been scouting Williams for the last few games.
Rodgers is likely to wait until the end of season in order to avoid conflict with his former club over a move with a gentlemen’s agreement in place preventing him signing any of the Swans’ players, apart from Joe Allen, during this campaign.
Williams only signed a new three-year deal with the Jacks last October but Swansea could be ready to sell if the right offer comes in during the summer months.