The 23-year-old has struggled for regular game-time at the Santiago Bernabeu over the past few years, and a move to the Reds might be just what he needs in order to resurrect his career and reach his true potential.
Jurgen Klopp is thought to be keen on strengthening his attacking options at Anfield this summer, with more competition to be provided for the trio of Mohamed Salah, Roberto Firmino and Sadio Mane. And Asensio could well prove to be that player for Liverpool.
The reports claim that Klopp is a big fan of the 22-capped Spain international, and sees him as the ideal addition to his squad this summer. This is not the first time the Reds have been linked with Asensio.
They have been linked with a move for the Spaniard on previous occasions but at that time, Asensio's stock was a bit higher. The 23-year-old has the ability to go on and become a superstar in the game.
He possesses a blistering pace, amazing skills and is blessed with a gifted left foot. He is also capable of playing on either flank as well as in the number ten role.
He could really become a priced asset at Liverpool, and for a fee £67.3 million which is not too high considering how inflated the market has become, Klopp surely won't be much hesitant to bring the extremely talented Spaniard to Merseyside this summer.
Real Madrid are also looking to offload some of their players after some sensational additions to their squad this summer. They could still make one or two more deals as Zidane is looking to overhaul his under-performing squad.