The 20-year-old Englishman is predominantly a left-back but is comfortable when switched to operate as a centre-back.
Kelly has 18 Championship appearances for City this season and has even scored a goal. The Championship side lie 13th in the league as they try to push up for a playoff spot.
The report adds that Tottenham, Manchester United and Arsenal are also keeping tabs on the England U21 international. The youngster, who seems to be a player for the future, has also trained with the England senior squad under Gareth Southgate.
The report claims that we are looking to sign him in the winter window, but face competition from the trio of Premier League clubs.
The Reds have done well with some of their young players in recent years and Kelly could be one for the coming years. He could make a story similar to Joe Gomez at Anfield.
The latter joined us on the cheap from Charlton Athletic a few years ago and even made his senior debut as the left-back. However, he has now shifted to central defence and has been impressive for the Reds under Jurgen Klopp.
Gomez is out for a few weeks due to injury and hopefully, he comes back stronger as we look to continue our fantastic start to the season.