The Reds are considering making a 45 million dollar move to signLuis Diaz from Porto.
The Reds had a target for the summer after they faced the player twice in the European competition, but they may decide to bring the plans forward because of Spurs interest.
Spurs have been in talks with Porto over the past week and are said to be willing to pay up to 46 million dollars.
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Sources in Portugal claim that Spurs are prepared to offer 38.6m up front for Diaz, with an additional 9.2m in performance-related add-ons.
Porto are holding out for a fee of 50.2m for the 25-year-old, who has 16 goals and six assists in 28 games for the Portuguese side this season.
Sky in Italy is reporting that Spurs are in talks to sign a player from Fiorentina on loan, with a buy option, and that they want to make at least one signing this month.
They could do more business if they were able to sell Dele Alli.
Paris Saint-Germain are close to a deal to sign a Spurs player on a loan with an option to buy.
The 25-year-old is looking to return to France, despite interest from Valencia andEverton.
The three-and-a-half year contract that he signed with Spurs in the summer of last year still has time to run.
After just six starts in the top flight this season, he has decided to return to his former boss at Spurs.
The clock is not running. The transfer window closes at 11pm on January 31.
Sky Sports has a dedicated Transfer Centre blog where you can keep up-to-date with all the latest transfer news. Sky Sports News has the ins, outs and analysis.
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