The Italian striker looks set to leave Anfield this summer, having played just 18 games last term, scoring one goal, and the Reds are looking to benefit from any potential transfer by getting a player in return.
Villa look to be the club that Liverpool want to deal with, and they are preparing to offer the 24-year-old forward in exchange for Fabian Delph.
Delph, who is starting to finally show the potential expected of him, flourished at Villa Park under Tim Sherwood, with the ex-Spurs boss naming him captain after a series of impressive performances. He is now a regular England international, and still has age on his side, being just 25-years-old.
Liverpool believe a deal can go through, with Villa showing an interest in signing Borini, although the report stresses that the Midlands club will not consider any deal unless it includes both cash and Borini in exchange for Delph.
The Italian forward was rated as a £12 million player last summer, when Sunderland could not agree a deal to sign him, and with just one year left on his deal his value has plummeted.
Delph is valued at much higher than Borini by Villa, and Liverpool will have to vastly improve their offer if they intend to formalise their interest in Delph in the coming weeks.