The 24-year-old would be the Reds' fourth major signing of the summer after recruiting winger Mohamed Salah from Roma, Hull full-back Andrew Robertson and striker Dominic Solanke from Chelsea.
Last season's Premier League runners-up Tottenham Hotspur managed to replace England right-back Kyle Walker, who joined Manchester City last month, by completing the signing of Ivorian Serge Aurier from PSG for a reported 25 million euros.
Liverpool have opened talks with Arsenal over a deal for midfielder Alex Oxlade-Chamberlain. "But I think he's a very, very positive signing".
Seeing Gibbs flourish under Tony Pulis at West Brom while Oxlade-Chamberlain bosses the midfield at Anfield would make it a lot harder for Arsenal's board to ignore the common complaints that Wenger no longer gets the best out of his players.
"I remember the first time I saw him play live - it was at Dortmund in 2014 and he came on as a sub that day and made a big impact".
According to the London Evening Standard, the north London club are not planning to bring in a direct replacement for Oxlade-Chamberlain and will promote from within the club.
He was found guilty in September previous year of assaulting a police officer outside a Paris nightclub in May 2016 and was given a convertible two-month prison term.
Kenedy was part of the first-team squad for the second half of last season and made a couple of appearances in games of no real significance.
Aurier appealed against the sentence and never went to prison.
The 24-year-old Aurier, who played 57 league games for PSG after joining from Toulouse initially on loan in 2014, is Tottenham's second major defensive recruit after center back Davinson Sanchez from Ajax.