The 22-year-old was a key part of Xabi Alonso's side last season, with the German outfit cantering to the Bundesliga title ahead of perennial winners Bayern Munich.
Hincapie featured on 26 occasions for Leverkusen in the top flight, 16 of those coming from the start, scoring once and providing two assists from defence.
The centre-back has spent the majority of the summer on international duty in the United States, where Ecuador were gunning for Copa America glory.
The Leverkusen man featured in every minute of the tournament for Felix Sanchez's troops, who were knocked out at the round-of-16 stage by eventual winners Argentina.
Liverpool 'learn' Hincapie asking price
According to Ecuadorian outlet Diario Expreso via the Liverpool Echo, Liverpool will need to splash out to secure the services of Bayer Leverkusen hero Hincapie this summer.
The report claims that Alonso's side are demanding at least £50m for the defender, who started his club's German Super Cup victory over Stuttgart on August 17.
It is understood that Arne Slot's side are willing to bolster their defensive options this summer amid transfer speculation surrounding a number of their first-team enforcers.
As well as the Reds, it is believed that fellow Premier League outfits Tottenham Hotspur and Manchester United are admirers of the 37-time international.
That being said, it remains to be seen whether Erik ten Hag's side return to the market for another centre-back following the arrivals of Leny Yoro and Matthijs de Ligt this summer.
Where would Hincapie fit at Liverpool?
A left-footed option, Hincapie has proven to be a versatile member of Alonso's squad at the BayArena since arriving from Talleres in August 2021.
The 22-year is naturally a centre-back but regularly operated on the left side of Leverkusen's backline as they cruised to the Bundesliga crown last season.
As a result, Hincapie could represent a potential replacement for Andy Robertson, who suffered with a number of fitness issues during the 2023-24 term.
With the Dutchman's contract at Anfield expiring next summer, Virgil van Dijk could be replaced at the heart of the Liverpool defence by Hincapie in the future.