The 28-year-old Morocco international only joined the Florence club from Ajax last summer but reports in his homeland have suggested a return to the Premier League is on the agenda.
El Hamdaoui, who had a spell at Tottenham earlier in his career, acknowledges that any link could prove mere speculation but was quick to praise the Merseyside club.
"Being linked with Liverpool is flattering but I really think it is paper talk so far," he told Sky Sports.
"Liverpool are a great club and to play there in a legendary stadium like Anfield would be fantastic and a dream.
"But I am at Fiorentina and I'm happy."