City boss Roberto Mancini appears ready to offload the England international, who has scored 15 goals in 97 games (including seven in 38 in 2011-12) since joining the Premier League champions from Middlesbrough in February 2009, and Liverpool manager Brendan Rodgers wants to bring him in.
Johnson has flair, pace, footwork, and a booming shot. There have been doubts about his attitude, work ethic, and willingness to contribute defensively, but these more likely stem from his frustration in struggling to get games at City, rather than any fault of personality.
Regardless, Johnson would help solve a big need for the Reds, filling the role on the right wing alongside newly-acquired Fabio Borini and Luis Suarez, where Stewart Downing has failed.
He would also continue the policy Liverpool operated under when ex-manager Kenny Dalglish was at the helm, signing young, English players with a high sell-on value.
The Reds, who lost their season-opener 3-0 to West Bromwich Albion, could benefit from the acquisition of Johnson.
Should he be signed, Johnson would become Rodgers' third signing as Liverpool manager, behind £10.5 million pick up Fabio Borini, £15 million man Joe Allen, and £2.9 million acquisition Oussama Assaidi.