Portuguese newspaper A Bola reports that Valencia are keen to take the 20-year-old on loan in January.
Ilori has failed to become a regular at Anfield following his £7million summer move from Portuguese side Sporting Lisbon.
The youngster is yet to feature for Liverpool this season and Valencia are in need of defensive reinforcements in January.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.