Sinclair's contract runs out at the end of the season.
Sinclair became Liverpool's youngest ever player when he made his debut for the Reds in a League Cup tie against West Bromwich Albion in 2012 - six days after his 16th birthday - and recently got his first senior goal for the club in the FA Cup third round tie against Exeter City.
However, his representatives have been unable to agree a new deal with the club to keep the player at Anfield beyond the summer, with the BBC report suggesting that he is looking for a move to Spain. Liverpool recently offered the 19-year-old a new contract but it appears to have been turned down.
Given the Reds' lack of firepower at the moment as three of their main strikers are sidelined, the fact that Sinclair hasn't been near the substitutes bench in recent games perhaps led to thinking that the only way he was going to get regular first team football was away from Anfield.
There have been suggestions in recent days that Liverpool are on the lookout for a new striker which would limit the teenager's opportunities even further, with the Liverpool Echo reporting that manager Jurgen Klopp is on the lookout for more firepower.