Belotti has been in impressive form ever since arriving at Torino last year from Palermo for a deal believed to be worth 7.5million euros, scoring 17 goals from 40 Serie A appearances.
The Italy international is quickly becoming one of the most talented forwards in the Italian top flight and his performances have been attracting the interest of the Reds.
Manager Jurgen Klopp is keen on adding more strength to his attacking department and the 22-year-old is said to be top of the January wish list.
Liverpool are rumoured to be willing to offer £19.5m to land their target and Torino will find it very difficult to turn down that sizeable offer.
However, the English club could face stiff competition with reports claiming Arsenal, who moved level on points with table-toppers Manchester City this weekend, are also showing an interest.
Alphonse Areola has emerged as a possible transfer target for Napoli amid claims he wants out of PSG with Gianluigi Buffon set to join.