The 20-year-old has established himself as a first-team regular at the Amex Stadium since the turn of the year and his performances are believed to have caught the eye of a number of top Premier League clubs.
Caicedo was signed for Brighton by former head coach Graham Potter in February 2021, joining from Ecuadorian outfit Independiente del Valle for just £4.5m.
The midfielder was sent out on loan to Belgium side Beerschot for the first half of the 2020-21 season, before returning to Brighton and featuring 11 times in all competitions under Potter in for the second half of the campaign.
Caicedo started all of Brighton's final eight Premier League games of last season and he has since played in each of their opening six top-flight matches this term.
Caicedo still has three years remaining on his contract at the Amex Stadium, but speculation continues to circulate about his future at the club.
According to Football Insider, Jurgen Klopp's Liverpool are planning to rival Chelsea - who are now managed by Potter - for Caicedo's signature in the New Year.
Liverpool were keen to recruit a new midfielder in the latter stages of the summer window due to a number of injuries to first-team players, and they eventually signed Arthur Melo from Juventus on a season-long loan deal.
The Reds allegedly have an option to sign the Brazilian permanently for £33.1m (€37.5m) in 2023, but it is thought that they will instead step up their interest in either Caicedo or Borussia Dortmund's Jude Bellingham.
Chelsea, meanwhile, are looking to strengthen their midfield options in the New Year, with the long-term futures of N'Golo Kante and Jorginho - who are both in their 30s and out of contract in June 2023 - believed to be uncertain.
Caicedo recently addressed speculation about a potential reunion with Potter in West London and admitted that it would be difficult to turn down the chance to move to Stamford Bridge.
"It made me very sad now that he [Potter] left for Chelsea, because he helped me a lot and I wanted to continue having him as a manager, but that's football," Caicedo told Argentine news outlet Ole.
"You never know: today you can be here and tomorrow somewhere else, that's the job of a footballer and a coach.
"At Brighton he worked very well and people love him very much. I'm very happy for him and for the great opportunity that was presented to him."
Caicedo added: "Right now I'm very focused on Brighton and the World Cup. I want to have a great World Cup and then we'll see what happens.
"I think they are one of the best teams in the world and nobody would turn down an offer from Chelsea or any other club like that. It'd be a dream to be in the best teams in the world and succeed there."
Caicedo, who has also been linked with the likes of Manchester United and Arsenal, is currently away on international duty with Ecuador and received his 24th cap in the goalless friendly draw with Saudi Arabia on Friday.