Housing developers Torus confirmed the talks to The Athletic, with talks claimed to be at an advanced stage.
And they appear keen on going back to the future, with Melwood their home from the 1950s until 2020.
In 2019, Liverpool sold the site for £10million to Torus, and later moved to a new state-of-art training facility in Kirkby.
Their women's team have been training at Tranmere Rovers' Solar Campus, but have been on the lookout for a new home.
Finishing seventh in the Women's Super League this season, the team are looking to consolidate their status in the top-flight with an up-to-date training ground part of that push.
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Liverpool vacated their long-time Melwood home in 2020, but received criticism for not making room for the women's team at their new £50m AXA Training Centre.
It was announced by property developers Torus in June 2021 that the Melwood building would be retained after agreeing a deal with Liverpool legends Jamie Carragher and Robbie Fowler.
Carragher's 23 Foundation and the Fowler Education & Football Academy currently reside in Melwood, and they will be able to share the complex with Liverpool Women should a deal go through.
Local residents are said to be pleased about a potential agreement, having previously expressed concern about new houses being built in the area.
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In a statement to The Athletic, Torus said: "We can confirm that Torus is in negotiations with LFC to reacquire the Melwood site.
"As negotiations are ongoing it would be inappropriate to comment any further at this time.
"When we are able, we will provide an update."