Reds boss Jurgen Klopp is reportedly ready to let the highly-rated youngster go out on loan during the January Transfer Window with both West Yorkshire rivals interested.
The 18-year-old also already made headlines in his fledging career when he became the youngest goalscorer in Liverpool's history with his strike against Leeds in last season's League Cup.
The forward also sensationally scored the winning goal against Austria on his Wales debut in September to become their second-youngest scorer behind Gareth Bale.
However, despite making nine senior appearances for the Reds, Woodburn's only outing for the side this campaign has come in an EFL Cup defeat at Leicester City.
And with competition for places from Roberto Firmino, Daniel Sturridge, Dominic Solanke, Adam Lallana and Danny Ings, German boss Klopp feels a loan move may help aid his development.
The youngster can play either up front, as a Number 10 or out wide and has also been linked to Bundesliga side Hannover.