According to Francesc Aguilar and Fernando Polo of Mundo Deportivo (h/t Jack Otway of The Express), the Reds want a deal that could total £148 million for the Brazilian with Barcelona in pursuit, but they won't allow him to leave until Sanches has been brought in.
Coutinho has been kept out of action at the start of the season with a back injury, but he appears to be in line to feature for his national side:
Despite his absence, the Reds have made a positive start to the campaign as they secured UEFA Champions League group stage qualification and picked up seven of a possible nine points in the Premier League, beating Arsenal 4-0 on Sunday.
Former Liverpool player Jim Beglin believes the playmaker is still needed at the club, however:
Indeed, his chemistry with the Reds' forward players and his ability to play on the left or in a deeper midfield role make him a huge asset to the team.
Sanches could occupy that midfield slot, and while he wouldn't be a like-for-like replacement, he would make a strong addition to the side.
The 20-year-old is a powerful, dynamic and technically gifted box-to-box player who will look to contribute at both ends of the field and link the play between the two.
He's an incredibly bright prospect, though he has struggled for game time since moving to Bayern Munich last year. Sanches played just 903 minutes in all competitions last season, and a six-minute cameo is all he has been granted so far this year.
Liverpool could give him the time he needs to develop his game further.
Sky Sports' Guillem Balague believes even if he arrives, it will not prompt Liverpool to part with Coutinho, though:
There might still be room for Sanches to nail down a place at Liverpool even if Coutinho stays.
It would hardly be surprising if the Portugal international was allowed to leave Bayern this summer, particularly on loan, and the Reds could give him a platform to grow.