Website Football Insider is reporting that Liverpool FC are interested in a potential swoop to sign the Spain international in the current transfer window.
The same article states that the Reds are looking at Traore as a potential recruit to improve their options in wide areas ahead of the 2021-22 Premier League season.
According to the same story, Liverpool FC have made contact with Wolves to see if the West Midlands side would be open to selling the Spanish winger this summer.
Football Insider is reporting that Reds boss Jurgen Klopp wants a versatile winger who can play on either side of his midfield.
The media outlet go on to reveal that Wolves were willing to listen to offers for Traore earlier this year, therefore the West Midlands side could be open to selling Traore this summer.
The Spain international has two years left to run on his current deal at Wolves so the Premier League side could look to cash-in on Traore this summer, according to the report.
Traore scored two goals and made two assists in 37 games for Wolves in the Premier League last term.
The Spanish winger has netted 10 times in 131 games in all competitions for Wolves since his move from Middlesbrough.