Gakpo has shone at PSV Eindhoven over the last 18 months and caught the eye with his displays for the Netherlands during the recent World Cup in Qatar.
He is a wanted man and PSV Eindhoven are prepared to sell, though they favour a sale early in the January transfer window.
Manchester United have been thought to be in pole position, but now Liverpool are trying to overtake the Red Devils.
Negotiations between Liverpool and PSV Eindhoven for Gakpo are described as now being at an advanced stage.
They have progressed within the last 48 hours and Gakpo could cost a fee of between £45m and £50m for Liverpool to take to Anfield.
Leeds United came close to signing Gakpo in the summer, but the winger rejected a move to Elland Road on deadline day.
Newcastle United are also admirers of Gakpo and have had him on their shortlist since before his World Cup exploits.
