After chipping in with nine goals in 41 appearances for PSV last season, Pepi has since made a promising start to the 2024-25 campaign, scoring six goals in his opening 11 Eredivisie matches.
The 21-year-old is PSV's joint-top scorer in the Eredivisie this season, despite starting just three games, while only three players in Europe's top-seven league have a better goals-per-90 ratio than the American (1.29).
According to CaughtOffside, Pepi's impressive form has caught the eye of several top clubs in Europe, including Liverpool.
The report adds that Bayern Munich, Borussia Dortmund and Atletico Madrid are among the other European giants who are keeping tabs on Pepi, but Liverpool are currently showing the strongest interest in a potential deal for the 31-cap USA international.
Pepi identified as a 'good fit' for Liverpool
Liverpool are understood to be considering a move for Pepi, which could see former Feyenoord boss Arne Slot raid one of his former rivals PSV to secure the services of the highly-rated attacker.
Sources have informed CaughtOffside that Liverpool's scouts view Pepi as a good fit for Slot's team due to his technical and mental qualities.
Pepi primarily plays as a centre-forward and he would presumably battle with Diogo Jota and Darwin Nunez for regular starts if he were to join Liverpool in the near future.
The former Dallas man is said to be valued by PSV at around €25m (£20.8m) and is under contract with the Dutch club until the summer of 2028.
Pepi "ready" for regular first-team football
Pepi is currently away on international duty with the USA and having provided a supporting role for much of his career to this point, he now believes that he is "ready" to gain more regular game time.
"I'm at a point in my career right now where I'm ready," Pepi told reporters as quoted by Goal. "I'm ready to start, to get more playing time. I feel like I've been showing that, whether with my club or national team.
"That's just how I'm feeling. I'm feeling ready to be the man, to be the starter. I feel like I've been proving that. I'll continue with the same mentality and continue to take advantage of my opportunities."
Liverpool's interest in Pepi come at a time when there are doubts over the long-term future of star attacker Mohamed Salah, who is out of contract next summer.