The Bundesliga outfit have not been in the best form of late, and face the possibility of being out of the title race this season, having seemingly suffered from the sale of star player Mario Goetze in the summer.

Henrikh Mkhitaryan was brought in from Shakhtar Donetsk as a replacement for the German playmaker, but Jurgen Klopp is understood to still be keen on signing another player in that position.

Kagawa played for Dortmund between 2010 and 2012 and is a top target for the club after falling out of favour at Manchester United this season, with manager David Moyes thought to be willing to listen to offers for him.