Sky Sports News reporter Kaveh Solhekol, who has followed the Liverpool team on their pre-season tour of the USA, understands that Brendan Rodgers is trying to tie up a loan move for the Spain U20 star who is valued around £10m.
Arsenal have been in talks for the past fortnight with Manquillo over a similar season-long loan move, with a view to a permanent deal.
However, Liverpool look favourites to land the 20-year-old, who only featured three times for Atletico last season.
Sky Sports also understands that strikers Loic Remy and Divock Origi are due to have their medicals in the USA, with the signings to be announced by Liverpool on Thursday.
And, despite the denials of Southampton manager Ronald Koeman, it is believed Liverpool have tabled a £20m bid for centre-back Dejan Lovren.
At the club's Harvard base in Boston, Fabio Borini is training with the squad despite a £14m bid from Sunderland, as is Pepe Reina, who has returned from a loan spell with Napoli.
Defender Daniel Agger also trained by himself, but only due to a niggling injury.
I agree Shockmaster, I think this is truly a make or break pre-season for Kelly. If he has a poor one I don't think he will even make it to the season. But I hope we loan him out to get some PL experience so at the very least if we are going to sell him, his price will go up if he has a good season. I had hoped our interest in Aurier had some truth to it, but sadly no it would seem. Well that doesn't give me much hope manitu69, those are some red flags there for me. Wisdom is a good loan move and I feel sending Coady out on loan to a PL side would be a good move too. I was hoping this season could see one of Ryan McLaughlin, Jack Robinson or Brad Smith get some game time or at least have a pre-season with the first team to hint that maybe they would do. I'd much rather we promoted Smith and Robinson and play them than sign Ryan f*****g Bertrand.- lfcfan80