Williams joined Swansea on loan last summer but only made seven appearances before returning to Liverpool in January.
He spent the latter half of the campaign with the Liverpool Under-23s and the Reds are again looking to loan him out ahead of the new season.
Several clubs in the Championship are interested in the defender but Blackpool are now leading the race to sign Williams on loan.
It has been claimed that the potential move is now down to the player to accept a move to Bloomfield Road this summer.
The Championship club have an agreement in place with Liverpool and is now trying to convince the 21-year-old to make the move.
Williams is believed to be sure about getting regular game time given his problems at Swansea last season.
He has 19 senior appearances for Liverpool to his name but is not part of Jurgen Klopp’s plans next season.
