Grealish is Spurs boss Mauricio Pochettino's number one target but Tottenham's chairman Daniel Levy is attempting to use Villa's financial problems to get the England under-21 star at a cut-price. Liverpool are hoping to hijack the transfer as a result.
The 22-year-old is valued by the West Midlands side at £40m, but Levy is refusing to pay more than £20m for a player Pochettino believes could have a similar impact for Spurs as when Paul Gascoigne made the move to White Hart Lane in 1988.
Leicester and Everton were also rumoured to be interested in Grealish, but Liverpool have now registered their interest with Villa - altering negotiations completely.
The Reds can match Tottenham's tempting offer of working under an appealing, evolving set-up who can challenge for the Premier League and provide Champions League football too.
Furthermore, Liverpool are understood to be willing to pay more for Grealish's services as Klopp strives to bolster his squad ahead of both domestic and European challenges next season.