The defender has struggled to settle in on Merseyside since being signed by Kenny Dalglish from Nacional in the summer of 2011.
He seems to have taken the biggest blow from a poor defensive display at Oldham Athletic on Sunday that saw the Reds make an disappointing exit from the FA Cup.
Manager Brendan Rodgers was furious after the defeat at Boundary Park with the performance of his young players, and the Uruguayan – who was already speculated to be leaving in this transfer window before the game, could be first out of the exit door.
Rodgers has been quoted as saying: “I have said in the last couple of weeks that he is a player who I believe needs games and needs to go and play but obviously, I need to protect the club as well in relation to the size of the group.
“Everyone knows how small we are as a squad. There are still a few more days to go, so we’ll assess that and take it from there.”
Brazilian club Gremio denied on Tuesday their interest in the 2011 Copa America Young Player of the Tournament, while Juventus, West Brom and Wigan Athletic are reported to be monitoring his situation.
Coates has only played three Premier League games this term, and is currently behind Daniel Agger, Martin Skrtel and veteran Jamie Carragher in Rodgers’ selection preferences.
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