Southampton have already lost striker Rickie Lambert to Liverpool, but are desperate to keep hold of Lallana.
Following an impressive season at Sunderland, it was thought that Borini would finally be given a chance to prove his worth at Anfield.
But with Luis Suarez and Daniel Sturridge forming such a formidable partnership last season, and with Rickie Lambert now joining the ranks, it seems Liverpool are prepared to offload the Italian in favour of strengthening their midfield options.
Borini was a hit on Wearside throughout his loan spell last season, the 23-year-old registered seven goals in all competitions for the Black Cats including two crucial goals in local derbies and one goal in the League Cup final defeat to Manchester City.
The Italian was later voted Sunderland's Young Player of the Year.
Sunderland manager Gus Poyet is expected to be in the market for at least one forward this summer, and has previously made no secret of his desire to sign Borini on a permanent basis if the possibility arose.
However if reports today are true then the Black Cats are likely to miss out on their number one target with Liverpool apparently more interested in using the striker as bait in their long pursuit to sign Lallana.
Borini's agent Marco De Marchi told the press earlier this month that his client intended on staying at Liverpool and was determined to fight for a place, but not further comments have been made regarding recent developments.
Bad news for Sunderland, but Black Cats fans can still cling to the hope that should the Italian decide his future lies away from Anfield, he has already hinted at the possibility of staying at the Stadium of Light.