The 19-year-old was close to leaving the club in the summer window, with boyhood club Barcelona interested in his signature.
Garcia had joined Manchester City at the age of 16 from Barcelona. The defender worked his way into the first team last season, but now has just six months left on his contract with the Premier League side.
Barcelona have publicly pursued the youngster and view him as long term successor to Gerard Pique at the heart of their defence. Pique followed a similar pathway into the Barcelona team, but from Manchester United.
The report suggests that Manchester City are looking to sell the youngster in January to recoup some of his value. Liverpool are looking for defensive reinforcements in January and are considering a move for the defender.
Eric Garcia could leave Manchester City for Liverpool
Already capped for the Spanish national team and a regular in Pep Guardiola's side, Garcia is a great prospect. The defender is good on the ball and a great reader of the game.
Liverpool are without Virgil van Dijk and Joe Gomez for the majority of the season due to injury. Although the likes of Fabinho and Rhys Williams have done well when called upon, Jurgen Klopp might look to add to his defensive ranks.
Eric Garcia, however, looks destined to go back to Barcelona. The Blaugrana are rebuilding their team with youngsters such as Ansu Fati, Frankie de Jong and Pedri, and Garcia would fit right in.
Manchester City's COO Omar Berrada admitter earlier in the season that City wanted to keep the youngster at the Etihad:
"He's become a top young centre-back who Pep trust, and we feel that keeping him this season was worth more than what we were offered for him. We believe that he can add depth to the squad, and can be important in important games."
However, with Nathan Ake, Ruben Dias and now John Stones finding their feet, Guardiola could consider offloading the Spaniard in January.Published 17 Dec 2020, 17:22 IST