Liverpool were interested in signing the 20-year-old winger last month, according to the Independent, but he eventually ended up staying with the Bundesliga outfit.
The lively Jamaican has really burst on to the scene in Germany this season, chalking up 10 goals and five assists in 20 games for Leverkusen, and is one of the continent's most highly sought-after youngsters.
Sport Bild claim that Liverpool have not given up hope of signing Bailey, but they will have to meet the German outfit's £44.1 million valuation of him, if they are to obtain his signature in the summer.
The Reds will not have things all their own way in their pursuit of the 20-year-old, however, with the likes of Manchester United, Chelsea and Arsenal also interested in signing him, according to 90 min.
The explosive winger would be a fantastic addition for the Reds, and would fit perfectly into Jürgen Klopp's preferred high tempo playing style, what with his electric pace, and willingness to run in behind the opposition's defence.
With the summer transfer window still a fairly long way away, though, there will be no rush to bring him to Anfield, but it is a story that will surely bubble away in the background, nevertheless.