Liverpool boss Gerrard Houllier is looking to make a major splash in the transfer market and it is understood that they are pressing ahead to try and broker a deal for the giant Australian.
Viduka was a target for Houllier in January, as was Ronaldhino who has since joined Barcelona.
Liverpool also targeted Viduka's team-mate Alan Smith, but it looks as if he could be on his way to Manchester United.
That leaves Viduka as Anfields primary striking target as they look to bolster their squad ahead of next season which will see them enter European competition for the fourth time in six years.
The former Celtic ace has indicated that a move abroad would appeal, but Liverpool are also an attractive option as it would mean he would not have to relocate from his Yorkshire base.