The 25-year-old came through Borussia Dortmund's youth setup and later played for the reserve side, while now Liverpool boss Jurgen Klopp was the first team manager at Signal Iduna Park.
German outlet Bild claims that Liverpool's interest in Demirbay dates back to their Champions League qualifier against the Bundesliga outfit last season.
It is said that Reds manager Klopp consoled Demirbay in a 'fatherly' fashion after the Merseyside club's 4-2 win.
Now, after inspiring Julian Nagelsmann's side to a 4-0 win over Stuttgart in the league on Saturday, Demirbay admitted that he was aware of Liverpool's recent scouting mission.