The 24-year-old Russian international has represented the Real Madrid since the age of 12 but is yet to play a single La Liga fixture for the Spanish giants.
The talented winger has spent much of his time in recent seasons with the club’s B team and enjoyed a successful loan spell at Villarreal last season.
Denis Cheryshev finished 2014/15 as one of La Liga’s leading assist makers and proved very effective during his temporary spell at the El Magdrigal.
Rafa Benitez has ushered Cheryshev into his first-team set-up for their pre-season tour of Asia and the attacker may hope to be part of the newly appointed Real Madrid manager’s plans for the coming campaign.
The likes of Cristiano Ronaldo, Gareth Bale, Isco and James Rodriguez currently stand in the way of Cheryshev’s progress at the La Liga side.
Liverpool boss Brendan Rodgers has enjoyed a very busy summer transfer window thus far with his Anfield outfit bringing in eight signings thus far.
The Merseyside outfit have brought in free agents James Milner, Danny Ings and Adam Bogdan as well as investing in the captures of Christian Benteke, Roberto Firmino, Joe Gomez, Nathaniel Clyne and young Brazilian Allan Rodrigues de Souza.
Liverpool have balanced the books with the sale of Raheem Sterling to Man City for a reported fee of £49m (via BBC Sport).