Brendan Rodgers has made a new left-back one of his top priorities as he looks to provide some cover and competition for Jose Enrique.
The likes of Benfica's Lorenzo Melgarejo and Valencia's Aly Cissokho have been linked as possible targets, but Siqueira has now emerged as his top target.
The 27-year-old has impressed at Granada since joining in 2011 from Udinese and the likes of Real Madrid and Manchester United have been credited with an interest in him.
Liverpool are thought to be locked in talks with Granada as they look to agree a fee for Siqueira with Rodgers keen to push through a deal before the start of the new Premier League season.
Brazilian-born Siqueira would have no issues regarding winning a work permit as he has dual Italian citizenship.