According to the Mirror, Liverpool are keen on signing Garbutt this summer, when his Everton contract expires.
Newly promoted Premier League team Bournemouth are also interested in signing the 21-year-old defender, as per the same report, and with no guarantees concerning whether he will earn a new Toffees deal, both clubs are said to be preparing offers for him.
Garbutt, a natural left-back who can also play in central defence, made 10 appearances for Everton this season, having now totalled 12 appearances in all for the Merseyside outfit.
He is considered one of the brightest talents in the Everton academy, and has impressed during various loan spells away from Goodison Park, but he has still not done enough to earn him a new contract from Roberto Martinez.
The Spanish boss is a keen admirer of the young defender, but Garbutt may be interested on securing a move away to guarantee the consistent playing time he does not receive on the Blue half of Merseyside.
He is an England Under-21 international, and has been capped at every level from Under-16 upwards, and many believe he will become a fully-capped senior star in the future.
This need to fulfil his potential is likely behind the search for consistent football, and Liverpool boss Brendan Rodgers has a proven track record at developing young talents and playing them in the first-team.
Garbutt’s ability to play in multiple positions makes him an exciting prospect to Liverpool, who are keen on revamping their entire defensive unit, whilst he has proven to be a very attacking full-back - allowing him to feature in the wing-back position that Rodgers favours.