Hudson-Odoi's contract runs out at the end of next season and he has reportedly made it clear to Chelsea that he wishes to leave.
He is expected to turn down an £85,000-a-week deal at Stamford Bridge as he looks to depart the west London club after just 14 first-team appearances.
Hudson-Odoi has been the subject of numerous bids from Bundesliga champions Bayern Munich, the latest believed to be in the region of £35million.
However, according to German publication Bild, Bayern are not the only ones interested in the 18-year-old's signature, with Liverpool also in the hunt.
The report claims that Liverpool's representatives met with Hudson-Odoi and his brother Bradley, who is also his agent, at the start of this month.
Liverpool are therefore in prime position to rival Bayern for the youngster, who has made just three league appearances this season.
The Reds have raided Stamford Bridge before, signing fellow youngsters Rhian Brewster and Dominic Solanke in 2014 and 2017 respectively.
It remains to be seen whether Liverpool will make a formal approach for Hudson-Odoi, with the report from Bild currently tenuous at best.