The Reds are one of a number of clubs across Europe chasing the talent.
Teodorczyk is fast gaining a reputation as one of Europe's most talented hidden gems as a result of his form over the last few seasons.
The 25-year-old starred for Lech Poznan in his native Poland before joining Dynamo in 2014, for whom he scored against Everton in the Europa League two years ago.
He was loaned to Belgian giants Anderlecht for the current campaign and has been on fire since the temporary switch, hitting 19 goals in 23 games in all competitions so far, including seven in seven Europa League games.
Now, according to Corriere's report, Jurgen Klopp's Liverpool have also entered the race to sign the hotly-tipped striker, who is allegedly valued by Dynamo at around £12 million.
The Italian outlet claims that top European sides such as Borussia Dortmund, AC Milan and Bayer Leverkusen are also in the running.
It is thought that Klopp wants to strengthen his attacking options in January.
Roberto Firmino has been playing well, but with Daniel Sturridge and Divock Origi both struggling for game time and goalscoring form, and Danny Ings having suffered another injury setback, Teodorczyk could be an excellent option to add.