Currently on loan with AC Milan, the controversial forward endured a dreadful campaign with the Reds last season and is widely expected to leave.
Lucrative switches to the mega wealthy Chinese Super League have been mooted, though the report claims the 26-year old could be used as bait.
La Viola playmaker Josip Ilic is thought to be of interest to manager Jurgen Klopp as he looks to carve a squad in his own image ahead of his first summer in charge.
The 28-year old is versatile across the frontline and able to score from an attacking midfield berth, bagging 13 goals in Serie A last season.
Should Klopp give Balotelli time to prove himself?