Jurgen Klopp tried to sign Dahoud back in the summer, but the Bundesliga outfit knocked back every attempt he made to get the youngster in red.
Dahoud is one of the most highly rated up-and-coming stars in the German top flight, and the 2016-17 campaign has only enhanced his sterling reputation.
Despite only scoring a single domestic goal so far, according to WhoScored.com, the Syria-born, Germany under-21 international has tormented defences all season and been behind exciting moves going forward for Monchengladbach.
Dahoud's playing style is very similar to that of Liverpool fans' favourite Philippe Coutinho, as he possesses incredibly quick feet, an eye for a pass and an air of confidence that almost tells team-mates to just give him the ball and let him do the rest.
Here's a look at what the midfielder could bring to the table at Anfield:
Dahoud has just 18 months left on his contract in Germany, meaning his current team may need to cash in on the midfielder in the summer before it's too late.
Barcelona and Liverpool certainly have the funds to test Monchengladbach's resolve and launch a series of big-money bids, although the German side will be looking to tie their star man down to a new bumper contract to end the speculation.
Elsewhere, the Reds may welcome Lazar Markovic back to Anfield before too long due to the Serb struggling out on loan with Sporting CP.
According to Portuguese outlet Record, Lisbon are weighing up whether to terminate Markovic's loan deal early, via Ian Doyle of the Liverpool Echo.
The Portuguese side paid £1.3 million for the loan deal and would have to pay a fee to send him back, with Markovic failing to reach the agreed number of performances for Sporting.
Liverpool are serious title contenders this term, with Klopp working his magic to make the Reds a real force to be reckoned with.
There are still holes to plug in the side, though, and January could see the German manager add the final few pieces to his puzzle.