The teenage midfielder is considered a hot prospect and has been training with Liverpool at their Melwood complex this month alongside fellow countrymen Philippe Coutinho and new signing Roberto Firmino [via the Liverpool Echo].
The Daily Mail believe Liverpool are set to sign Allan, with the Merseyside club having entered into talks with his side Internacional ahead of a proposed £500k deal.
Liverpool boss Brendan Rodgers is known for trusting to youth and has brought in a host of youthful additions over the course of his three years in charge of the Anfield side.
Last summer, Rodgers brought in Lazar Markovic and Emre Can, from Benfica and Bayer Leverkusen respectively, and has welcomed Belgian forward Divock Origi earlier this summer having signed the Lille man a year ago, before loaning him back to Les Dogues last term.
Liverpool endured a miserable campaign in 2014/15, with Rodgers seeing his side slip from second to sixth in the Premier League table. However, they have subsequently invested heavily in their squad this summer.
Rodgers has been backed in the transfer market, with the Northern Irishman having thus far brought in seven signings.
Liverpool brought in free agents James Milner, Danny Ings and Adam Bogdan, and purchased Joe Gomez, Roberto Firmino, Nathaniel Clyne and Christian Benteke with the £49 million sale of Raheem Sterling to Manchester City also helping to cover a portion of the transfer outlay made by Rodgers [Telegraph].