According to a report from The Express, sources in Spain claim that Brendan Rodgers is ready to activate a £20m buy-out clause in Parejo's contract.
The report adds: 'Liverpool's bid is imminent and Valencia will be forced to accept the offer for their former Spanish under-21 international.
'Rodgers announced that he is targeting up to five quality additions to bolster his Champions League bound squad - with Parejo in-line to be the first.'
If the reports in Spain to out to be true, and Rodgers is close to activating the release clause of Parejo, we take a look at the questions surrounding the deal, and the reaction Liverpool fans have add over the rumours.
What kind of midfielder is Parejo?
The name Dani Parejo has been associated with being an attacking midfielder for a while now, however, I believe it's Gerrard that should be fearful for his place in the side - not Coutinho.
This season, the 25-year-old has been played in five different positions, both in attacking roles and defensive. He has arguably played his best football in the position he has spent the majority of the season playing, defensive midfield. Which, I would argue, is the reason he may have caught Rodgers' eye.
Is he the man to replace Gerrard?
To phase out and replace Steven Gerrard in the Liverpool team, you will have to be something special and with Parejo, in my opinion, that remains to be seen.
He has undoubtedly enjoyed his best year in football to date and has shown a lot of promise this season, but would I put my head on the line and say he definitely will? Absolutely not.
He does have promise, but he would need to improve.
Will Liverpool have to fight for his signature?
After such a strong year, I would say so. Atletico Madrid are just one of the clubs rumoured with interest and if they can claim the La Liga title this weekend then they could be in the driving seat.
Liverpool may be able to offer the most money in terms of wages though thanks to the large Premier League television rights windfall, which should put them in a strong position during negotiations.
@LFC I think if there signing Lallana, Moreno, Caulker, Griezmann, and Parejo will make us very strong next season— faiq (@ahmdfaiq) May 15, 2014
I just hope the Parejo rumour is a joke! He is not what we are looking for.Carvalho is 10 times the player and that's an understatement #LFC— Brendan Neeson (@RedorDeadDublin) May 15, 2014