The 23-year-old defensive midfielder has been in fine form for Monchengladbach this season and has even captained them for the majority of the season.
According to the BILD report, Klopp met with Andy Gross, Xhaka’s agent and discussed the possibility of the Swiss international making a move to Merseyside.
The midfielder is under contract until 2019, but there is a clause in his deal that says in 2017 he can leave if a team bids €30million for him.
Whilst it is unlikely that he’d leave in this window, a summer move does seem realistic if Liverpool can agree a deal similar to his buy-out clause.
Xhaka missed Monchengladbach’s last game through suspension after he was sent off for violent conduct after an off-the-ball clash in the 3-2 win over Darmstadt, a game that took place before the Bundesliga’s winter break.
That was the 23-year-old’s fifth red card in 95 games for Monchengladbach, so if he does move to Liverpool, he will have to look to improve his disciplinary record.