Reds boss Brendan Rodgers had been in talks with French side Lille earlier in the summer to try and strike a deal for 19-year-old Digne.
But it seems he will opt to stay put in the French Ligue 1 next season by agreeing a move to big-spending Monaco as opposed to joining the Merseysiders.
Therefore Rodgers has switched his sights elsewhere with 25-year-old Cissokho thought to be a £4million target.
The French stopper, who only joined Valencia last summer from Lyon, made 20 appearances for the Spanish Primera Division outfit last term.
However, as the club have reported cash problems, it is thought they would be willing to offload Cissokho should Liverpool firm up their interest in him.