Al Ittihad is planning to make a formal offer to Liverpool for the purchase of Fabinho, according to The Athletic.
The Saudi Pro League club's bid for the 29-year-old Brazilian player is expected to be around £40 million, according to the outlet.
The defensive midfielder still has three years remaining on his current contract with Liverpool, but he faced difficulties last season when the Reds failed to qualify for the Champions League.
The Brazil international is not the only player being pursued by a Saudi Pro League team as Liverpool skipper Jordan Henderson is currently considering a highly lucrative offer from Steven Gerrard's new club in Saudi Arabia, Al-Ettifaq.
If Fabinho were to move to Al-Ittihad, he would join forces with Karim Benzema, N'Golo Kante and Jota, who joined from Celtic.