The Portuguese international has been a constant figure in an impressive Saints backline this season, earning his first caps for his country in the process.
Liverpool's defence has attracted a lot of criticism this season, especially with £20million flop Dejan Lovren not making the smoothest of transitions from the South Coast to Merseyside.
Lovren and Fonte formed a good centre-back partnership last season at Southampton and Fonte could be seen as a cheap alternative to get the best out of a defender who they've already overspent on.
Brendan Rodgers spent much of the 2014-15 season playing midfielder Emre Can in defence, while Kolo Toure is out of contract and Martin Skrtel is yet to have agreed a new deal at the Reds - so it's clear Liverpool require some beefing up at the back.
It appears Southampton are reluctant to let any of their stars go this year after a turbulent 2014 summer. However, that hasn't stopped the press reporting otherwise.
Rumour rating: 3/10: No quotes in original article. Appears to be guesswork.