Football Insider has reported that the Reds are on alert after hearing the Spain international could be available for £18-20 million.
With that being the case, Phillips said that he can see Liverpool and the 25-year-old reaching an agreement sometime soon.
Phillips told Football Insider the following: “I think that deal will happen.
“Traore would jump at the chance to join Liverpool. You do not turn that opportunity down, even if you are going to sit on the bench a little bit. Traore has been at Wolves a while now.
“From Liverpool’s point of view, £20 million is a good price for player who can hurt teams from the bench. He is what he is though, he can also frustrate the hell out of you.
“As an impact player I think he’d be a good signing though. I think for £20 million it is a good deal all round.”
ANFIELD WATCH VERDICT
Traore is certainly an exciting player. Footage of the forward highlights that he possesses speed and strength.
However, Traore does not score or create enough goals. The 25-year-old has only found the back of the net 10 times and registered 18 assists in 147 appearances for Wolves' first-team.
Traore has also had an average start to the 2021-22 club campaign. The Spain international has not scored or created a goal in all competitions.
Therefore, we believe that the club could sign a better player that Traore. Only time will tell if Liverpool are to make a move for the winger.