It is no secret that Dalglish has been seeking a defender this summer, with Stoke's Ryan Shawcross, Birmingham's Scott Dann and Bolton's Gary Cahill all being mentioned.
Now, according to The Guardian, Liverpool have opened negotiations with an offer for Nacional defender Sebastian Coates.
The 20-year-old has spent the last three seasons with Nacional in the Uruguayan First Division and has become a key player for them. He also played an important role for his country as they triumphed at the 2011 Copa America, being named The Tournament's Best Young Player in the process.
At 6'6'', Coates would bring some much needed size to the Liverpool back four. While he may not step straight into the first team, he is a bright talent and would be able to grow behind some of the Reds' more experienced defenders.
That said, if Dalglish wants to make a splash, he would be well advised to do it now. Coates has no shortage of suitors, including money bag Manchester City and London rivals Arsenal. Nacional are hoping to spark a bidding war between the clubs.
Liverpool's bid was reported to be in the region of £8 million.
Follow Jacob Ware on Twitter at @JacobWare95