Rafael Benitez secured his first major signing of the summer with the £26.5million capture of Fernando Torres from Atletico Madrid last week and has now turned his attention to landing a new winger.
And according to The Independent, Benitez made an offer of around 10million euros for Babel on Sunday after the Dutchman impressed at the European Under-21 Championship last month. .
The 20-year-old had previously said he wanted to join Arsenal after spending another season at Ajax, but Liverpool are poised to swoop after missing out on Florent Malouda to Chelsea.
Newcastle are also thought to be interested in Babel, who can operate as a striker as well as on the wings, but Sam Allardyce's side are unlikely to be able to match the spending power of the Champions League finalists.
Babel has been tipped by Holland manager Marco van Basten as one of the country's brightest young talents and he has already represented the senior Holland team, scoring on his debut against Romania in March 2005.