Liverpool are preparing a January bid for Birmingham City starlet Demarai Gray, according to Goal.

Gray, 18, is one of the most sought after players in the Sky Bet Championship, and he has attracted the interest of a number of top-flight clubs.

A number of top-flight clubs including Tottenham Hotspur, Liverpool and Newcastle have all rumoured to be after the youngster, whilst Eddie Howe's AFC Bournemouth have already had two bids rejected for him.

In an interview with Birmingham’s Official Website, Blues boss Gray Rowett admitted that Gray is remaining cool amid interest from some top-flight clubs: “If you are a young lad I would rather be listening to speculation about lots of big clubs wanting to sign me than absolutely no speculation at all and no-one interested in you.

“It might just inspire you to better performances. All I look at is what is good for this club and if that benefits this club and it doesn’t affect him too much. At the end of the day he’s 18-years-old and we don’t want to put too much pressure on his shoulders. At the moment he is doing great and long may it continue.

“Lots of clubs are looking at Demarai at the moment, as we know from our scouting lists on the games – but I think that’s just testament to the fact he is a really bright 18-year-old footballer who is doing really well. If that manifests itself into other clubs making bids then I don’t know what’s going to lie ahead.”

The 18-year-old winger has accrued appearances for the England under-18 and under-19 side on numerous occasions, and looks set for significant involvement in the England senior team in the years to come.

Gray has been at the Midlands club his whole career, however has he has really found his feet this season, especially under new boss Gary Rowett who is giving Gray a wealth of first-team opportunities.