The Uruguayan looks set to leave Merseyside this summer after making just eight starts as Arne Slot's side breezed to the Premier League title.
He had been the subject of interest from Antonio Conte's Napoli earlier in the window, with the Italian club thought to have been negotiating a cut-price deal with Liverpool for the striker.
But talks eventually collapsed after club officials failed to agree a price, with Napoli instead signing Udinese frontman Lorenzo Lucca.
Now, AC Milan - who recently appointed Massimiliano Allegri as their manager - have identified Nunez as a target up front.