The Reds are looking to sign a successor to retiring Jamie Carragher, and boss Brendan Rodgers recently revealed there was nothing concrete on the matter.
However, Daily Mail has suggested that Liverpool are closing in on Netherlands international Douglas.
The 25-year-old, who was on the verge of joining Newcastle last summer, will be a free agent in the summer and Liverpool are expected to pounce.
The Reds don’t have a big transfer kitty, which is another reason why they are expected to go for the Brazilian-born stopper.
Douglas joined Twente from Joinville in 2007 and has since developed into a key player for the Tukkers.
The towering defender, who recently become eligible to play for Netherlands, has clocked up 162 Eredivisie appearances for the Tukkers and scored 15 goals in the process.