Sky Sports’ Vinny O’Connor and Liverpool Echo’s Paul Gorst have reported that the Reds are interested in bringing in Carvalho before Monday’s deadline.
Who is Fabio Carvalho?
One of the best attackers in the Championship this season, Carvalho has seven goals and four assists in 18 league games.
Primarily an attacking midfielder, he can also operate on the right or left flanks.
An excellent dribbler, his positioning and movement are his standout attributes.
Liverpool writer Sam McGuire sums it up best when he says that "[Philippe] Coutinho used to dance past opponents to create chances for others, Carvalho slaloms past them to create opportunities for himself."
He has composure beyond his age, and when combined with his positioning and movement, allow him to beat a man, shield the ball or roam into space to receive the ball.
He is involved in almost everything Fulham do going forward, so is certainly comfortable with the ball at his feet.
Whilst his finishing needs work, he has already shown a tendency to excel in the attacking third of the pitch and this will only increase learning from the likes of Mohamed Salah, Sadio Mané, Roberto Firmino and Diogo Jota.
He is not the first young talent that Liverpool will have plucked from the Craven Cottage outfit.
And the Portuguese has in fact played 25 games with Harvey Elliott.
A particular highlight was a 4-0 drubbing of Reading's under-18 side, when he scored a hat-trick from the left of a 4-2-3-1, whilst Elliott played as a right sided midfielder.
Elliott had cemented a starting berth before his cruel injury, and Carvalho will be confident he can do the same.
His confidence in his own ability is evident by the 19-year-old's ambition to win the Ballon d'Or in the future.
And Fulham could be looking to avoid feeling cheated by a small tribunal fee again like when the Reds signed Elliott when his contract expired.
Why move now?
Liverpool have stepped up their pursuit of targets in the past few days as it became obvious that other clubs were interested. They probably would have waited until the Summer to secure the Diaz and Carvalho deals, but urgency was required once other clubs starting sniffing around.