Reds manager Kenny Dalglish and director of football Damien Comolli have made signing a new wideman to supply Andy Carroll and Luis Suarez their top priority for the summer transfer window.
Comolli has been monitoring the progress of Menez for some time and the 23-year-old has now indicated he is ready to move to England.
The France international was non-committal when recently asked about his future, but has now fallen out with both his boss and Roma's fans.
He was involved in a bust-up with coach Vincenzo Montella during the 1-0 loss to Inter Milan in the first leg of the Italian Cup semi-final and the club's Ultras later pelted his car with stones.
Menez was not hurt in the attack but, according to the Daily Mail, it was the final straw and he has now decided to move on in the summer.
Liverpool are likely to face competition from Arsenal in the race to sign the ex-Sochaux and Monaco star, while Manchester United have been linked with him in the past.
The Anfield club have also been credited with an interest in Aston Villa's Stewart Downing and Fiorentina's Juan Vargas in their search for a new winger.
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