The 17-year-old, nicknamed The Devil, has been making waves in Paraguay and has seen his name linked with a number of top European sides.
Real Madrid are reportedly closely following the young forward, while a number of Serie A sides are also keen.
La Gazzetta dello Sport claims that Inter have also joined the race for the Paraguayan hotshot.
Club Libertad values the player at €5 million, which is a lot of money to pay for a player who has started just three league games in his professional career, but the price tag is unlikely to put off the interested sides.
Caballero has already made 22 league appearances for his club, scoring 4 goals in the process, and is widely regarded as one of the most talented forwards in South America.