The 19-year-old joined the Reds from Benfica in 2011, and is well thought of at Melwood.
The tough-tackling midfielder is being monitored by a number of clubs in England, whilst there is also interest from Holland and France in the Guinea-Bissau-born star.
Baio, who is out-of-contract at Anfield at the end of the season, could move out on loan.
Lee Payne of Full Contact told Sky Sports: "Yalany is a talented player, and has a great presence that would be welcome in any dressing room.
"He remains contracted to Liverpool for the time being, but in all probability may be moving on soon or in the summer.
"If that is the case, we will be looking for the right club for him, where his style of play as a tough-tackling, vocal, holding midfielder will be best served."
@lorderak Just because it says "a number of clubs in England, whilst there is also interest from Holland and France" doesn't mean it's Man City, Ajax and PSG. Think about it.- hurler