The French defender's deal at Bayern expires at the end of the current season, and the German champions are open to letting him leave as a free agent.
Liverpool are monitoring developments closely and are ready to open discussions in the new year if compatriot Ibrahima Konate fails to sign a new contract at Anfield.
Konate, who joined Liverpool from RB Leipzig in 2021, has yet to commit to an extension despite talks ongoing for nearly 12 months.
His current deal runs until June, and Real Madrid are among the clubs showing strong interest - prompting Liverpool to draw up contingency plans.
Upamecano has emerged as the leading alternative, but Bayern's plans may complicate matters. Should the Frenchman depart, Bayern are targeting Crystal Palace's Marc Guehi as a potential replacement.
The England international, who has 27 caps, is entering the final year of his Palace contract and is attracting attention from both Bayern and Liverpool.
Liverpool nearly secured Guehi's signature on deadline day before the deal collapsed, but the Reds remain keen to revisit the move next off-season.
Liverpool FC have confirmed that Arne Slot has left his role as head coach with immediate effect, with the club now beginning the process of appointing a successor.
Raheem Sterling has been arrested following a motorway incident after his Lamborghini collided with barriers on the M3, with police confirming the investigation is ongoing and bail has been granted while enquiries continue.
Former Bayern Munich forward Thomas Muller believes Michael Olise has the qualities needed to challenge for football's biggest individual award, placing the French winger ahead of teammate Harry Kane in the Ballon d'Or conversation.
Graeme Souness has criticised Mohamed Salah for the manner in which he ended his glittering spell with Liverpool, claiming the Egyptian forward failed to make a gracious exit.
