The Reds have been in discussions this week with the Serie A giants, and the Italy international is on Merseyside to complete his medical.
The move has divided opinion amongst supporters, due to the fiery temperament of the talented Balotelli, but in a window that has seen Shane Long move to Southampton for £12 million, there can no disputing that a £16 million move for a 24-year-old Italy international who has won Serie A and Premier League titles represents reasonable business.
However, despite the move for the mercurial Balotelli, a recent report by Goal.com claimed that the Anfield side have also offered a deal to Eto'o, who left Chelsea in the summer.
So should the Cameroon striker make the move to Anfield, what would that mean for Balotelli and the rest of the strikers at Brendan Rodgers' disposal.
Any deal for Eto'o is likely to be a short-term option to give the squad more depth, and the arrival of the ageing Cameroon forward would not take on Balotelli's mantle as the Reds' marquee singing. The Italian would be something of a Luis Suarez replacement at Anfield, while Eto'o would provide additional cover.
The fun-loving England international has now scored 36 goals in 50 games since his move from Chelsea in January 2013, and there is no doubt that Sturridge is the main man to lead the strike-force in a post-Luis Suarez world. He scored the crucial winning goal against Southampton on Sunday to give the Reds a great start to a season that includes a first Champions League campaign since they were knocked out at the group stages back in 2009. Sturridge is the go-to guy for Liverpool now.
The striking landscape has changed almost beyond recognition for Lambert since he made his £4 million switch from Southampton earlier this summer. The 32-year-old was brought into to play second fiddle to Suarez and Sturridge, but with the imminent arrival of Balotelli and possibly Eto'o, the England international would arguably drop to fourth choice in a side that primarily plays one up top.
The impending arrival of his compatriot would indicate that the Italian's days are numbered at Anfield. Sunderland agreed a £14 million fee with the Reds last month, but the move has been held up, with Liverpool's attempts to secure a replacement the most likely reason. Expect Borini to complete his switch to the Black Cats before September 1.
Sterling's position is likely to remain unaffected even if both Eto'o and Balotelli pitch up at Anfield. The 19-year-old will be a key member of the Reds' squad this term, and the versatile teenager can operate as a winger on either side and as a central attacking midfielder in a diamond formation. Eto'o is not a wideman, and Balotelli's impact would be significantly lessened if he were to be farmed out wide in place of Sterling.