Goretzka has scored 13 goals in 98 Bundesliga appearances for Schalke since his debut back in 2013 but the 22-year-old midfielder is out of contract at the end of the 2017/18 campaign.
Both Manchester United and Arsenal were monitoring the Germany international’s contract situation during the summer transfer window and now Liverpool are understood to have stepped up their interest.
Liverpool Echo suggest the Merseyside giants are one of a number of elite European clubs keen on Goretzka.
Schalke sporting director Christian Heidel admits the club are prepared to make Goretzka the highest paid player at the Veltins-Arena in order to fend of the likes of Liverpool and United.
He said: ‘We go to the pain threshold. We have done everything to show Leon that he is extremely important to Schalke.
‘For us, there were always two options: either his contract is extended or he remains here until 2018. It was never an issue for us.
‘We believe that it is best for him to stay here. The ball is now with Leon.’