The Uruguayan has enjoyed a standout season having scored 11 goals in 16 appearances for Brendan Rodgers' side and Roberto Mancini is considering whether to sell Mario Balotelli in the winter window to help finance the deal, according to reports.
In the light of Suárez's form and he being Rodgers' only recognised striker, the Liverpool manager and the club's American owners would not wish to sell him should any bid from City be lodged.
The price Suárez would command could prove a major stumbling block. The 25-year-old recently signed a new contract with Liverpool that is worth around £120,000 a week and runs until 2016. This means they are likely to demand a price beyond the club record £50m that Chelsea paid for Fernando Torres.
After disciplinary issues that led to an eight-match ban last season for racially abusing Manchester United's Patrice Evra during a Premier League game in October 2011, Suárez has settled into his role asLiverpool's talisman. His departure would be a major setback as the club attempts to build towards regaining a Champions League berth and challenging for the title.
Suárez, who scored in Uruguay's 3-1 win in Poland on Wednesday night, may not wish to leave even if Mancini does bid. Last week Rodgers said: "Luis had the chance to go in the summer. There was probably no better time for him to do that with a new manager coming in. He could have had an excuse to go but having spoken to him at length he committed to staying here. He gave us that opportunity to see how it was going to work. It's up to us as a club to add players that can help support him and move us on."
Mancini may well be frustrated with Balotelli but whether he could raise money from the Italian's sale is debatable. The striker's salary and temperament could dissuade suitors while Milan, who do retain an interest, may not have the funds to finance his purchase so any deal would only be a loan which would not raise the required cash.
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