The Spanish fullback has struggled for game time in 2015, and may now be sent back to Atletico Madrid.
The 21-year-old made a positive start to his time in Anfield last season, after joining the club on a loan that then had the option of a permanent deal.
He and Alberto Moreno were key figures for the Reds at the beginning of the campaign, but the Atletico Madrid player slipped from favour later in the season.
Manquilo made regular starts for the Reds during the opening half of the campaign, claiming 10 starts in the league before the end of 2014. But considering Liverpool's form wasn't so impressive in the run up the New Year, the Spaniard was one change implemented by Brendan Rodgers, and the club then went on a 13-match unbeaten streak that saw Manquillo stricken from the starting eleven.
He made no more appearances in the league for the rest of the season past December, and only appeared in two FA Cup matches and one Europa League tie this year.
Should Liverpool keep him for another season?
Liverpool lost Glen Johnson this summer after the England defender's contract expired, but recruited Nathaniel Clyne to take his place, leaving Manquillo's position in the squad as uncertain as it was last season.
In fact, it could be argued that the Spanish Under-21 player is even further away from the first team if you take into account the signing of Charlton's Joe Gomes and the return of Andre Wisdom, two players who can also feature at right fullback.
The one uncertainty in the side in that position is the return of Jon Flanagan, with the 22-year-old set to spend more time out after suffering a relapse earlier in the year in his return from a knee injury.