Jude Bellingham is a signing that presents a "big risk" for Liverpool due to his price-tag, according to former midfielder Dietmar Hamann.
Jurgen Klopp's side are among several clubs attributed with an interest in the Borussia Dortmund midfielder, whose impressive performances at the World Cup with England has resulted in further attention.
Real Madrid are reportedly eyeing a move for Bellingham and Paris Saint-Germain chairman Nasser Al-Khelaifi has confirmed his club's interest in the 19-year-old.
Liverpool could therefore have to pay a record-breaking figure in order to land Bellingham's services.
Though Hamann believes Bellingham is an exciting player, he urged his former club to show caution.
"I'd be careful with Bellingham right now. He's an exceptional talent, he showed that at the World Cup, but if Dortmund ask for £100-million odd, £140-150 million, it's a big risk as well," he told Talksport.
"I think with Bellingham he's got to find a position. He models himself of Steven Gerrard but I don't think he's got the ability and pace going forward like Gerrard had.
"I think you need to wait and see where he finds his spot in the midfield two or midfield three in the future, and to pay £150million for an 18 or 19-year-old, I think it's a big risk."
Liverpool have already made a move to reinforce their squad ahead of the mid-season transfer window, with PSV confirming their agreement with the Reds for a deal taking Cody Gakpo to Anfield.
The 23-year-old caught the eye with his exploits for the Netherlands at Qatar 2022, where he became the first Dutch player to score in his first three World Cup games.
"They have needed a player like him for the last few years. I don't think they have enough of a goal threat from midfield," Hamann added of Gakpo.
"They are always a threat from set-pieces and that will be strengthened with his size and physicality. And in midfield, at times I feel they lack a bit of physicality.
"They don't have a player who has the physicality that he has got. I always look at Joelinton as a player in the mould Liverpool needed because he can drive from midfield, he can head the ball, very good technically, and he has got a bit of pace about him as well.
"He is a great addition and I hope we see a lot of him in the next few weeks and months."