Morton, 20, came through the youth ranks at Liverpool and has so far made two senior appearances for the Reds.
The talented midfielder spent last season on loan at Blackburn Rovers and was a key figure at Ewood Park.
He is of loan interest to several outfits from the Championship, including Hull City, in the ongoing transfer window.
The Tigers were in pole position to secure the services of the talented midfielder on a temporary basis.
However, it is now claimed that Klopp is leaving towards keeping hold of the England Under-20s star.
Morton is rated highly at Anfield and he is likely to stay put at the Merseyside giants as cover.
Whether that means Liverpool will finish the summer transfer window without spending money on another midfielder remains to be seen.
