The Reds were reportedly leading the race for the 22-year-old, but now have a rival for his signature.
The 22-year-old has enjoyed an impressive season in Ligue 1, scoring nine goals and registering five assists.
That form has led to interest from a number of clubs, although Liverpool were thought to be favourites for his signature after L’Equipe revealed he had travelled to Merseyside to see the club’s facilities and discuss terms back in May.
Now though, it appears any potential move for Ntep will not be an easy one, with Monaco having joined the Premier League side in pursuit of the highly-rated forward.
The French club are looking to offload Radamel Falcao once again this season and have already decided to release Dimitar Berbatov following his spell, meaning they are in the market for another striker.
It is believed they would use any money from a potential sale or loan agreement for Falcao to fund a move for Ntep. Liverpool, on the other hand, are in desperate need of firepower after the so far failed experiment with Mario Balotelli, while Daniel Sturridge is still recovering from injury