Liverpool have had a decent transfer window so far, having broken their transfer record for the services of AS Roma forward Mohamed Salah.
Jurgen Klopp has brought in Dominic Solanke, Mohamed Salah and Andrew Robertson but reported potential deals for Naby Keita and Virgil van Dijk have yet to come to fruition.
The midfielder is now seeking a move away from the German champions, with Chelsea manager Antonio Conte reportedly showing interest.
The Portuguese worldwide has struggled to establish himself as a first team regular under boss Carlo Ancelotti and made just 17 appearances in all competition last season.
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Now the Bundesliga giants are prepared to let the 19-year-old spend some time out on loan to hone his skills in competitive situations.
Swansea boss Paul Clement was assistant to Carlo Ancelotti at Bayern and has a good relationship with the Italian gaffer.
Sky Italy: Liverpool in talks to sign Renato Sanches. That said, there is no questioning the ability he has as he proved with his performances at Euro 2016 that he can shine when he's happy playing football.
Sanches was an unused substitute on the weekend as Bayern began their defence of the Bundesliga title with a 3-1 win over Bayer Leverkusen.