Liverpool are reportedly keen on signing the Real Madrid ace.
Spanish media outlet Mundo Deportivo claimed last week that the Reds submitted an offer of £158.3 million to Madrid for the 22-year-old's services - a bid that was subsequently rejected by the La Liga giants.
The Sun now suggest that Jürgen Klopp is prepared to go all out for Asensio, and has the Liverpool board's backing to sanction a £178 million move for the Spain international.
If the Merseyside outfit are successful in their pursuit of the Madrid ace, he would become the second most expensive footballer of all-time, behind Neymar, and the £178 million transfer would smash the current English record of the £89 million that Manchester United paid for Paul Pogba two years ago.
Good signing for Liverpool?
Asensio is one of the most highly sought-after young players in world football, and he would be a quite simply sensational addition to the Reds' squad.
The Spaniard possesses blistering pace and is cool and composed in front of goal. He would bring strong competition to Liverpool's famous front three, and could be the signing that takes the Merseyside outfit to that elusive next level.