The BBC pundit feels the Manchester United striker should be a viable target at Anfield.
The Colombian has spent the current season on loan at Old Trafford but has failed to score more than four Premier League goals under Louis van Gaal's stewardship.
Savage, however, feels Falcao would be a good option for Liverpool when it comes to boosting their top-four chances next term.
The BBC pundit said of the Manchester United forward: "The difficulty for Liverpool is that they will be competing for the same players as their rivals but without being able to offer them Champions League football.
"So they might have to take a punt on a player that the other teams don't want.
"Radamel Falcao might be an idea, if they can get him. He surely cannot do much worse than Liverpool's strikers managed between them this season."
As Opta stats show, Falcao's poor campaign looks rather good when put into context alongside Liverpool's charges this season.
Indeed, the Colombian has the same number of goals as the injury-hit Daniel Sturridge but also has more than Rickie Lambert, Mario Balotelli, Lazar Markovic and Fabio Borini.
Only four Liverpool stars have netted or assisted more than the Manchester United hitman.
But whether that's justification enough for the Reds to move for Falcao is a puzzling concept. Liverpool will want to forget all about this season - not use it as a standard of measurement for their future signings. Or perhaps there is method in Savage's madness...