According to The Guardian, Liverpool are facing a block on a transfer move despite being prepared to pay £25 Million.
Although the price is deemed a worthy, club officials at Gladbach are worried that the sale of Granit Xhaka will lead to a mass exodus at the club.
Arsenal moved quickly to sign Grant Xhaka, agreeing a deal worth in excess of £30m before the European Championships had even started.
Dahoud, who was a key figure alongside Xhaka last season and is expected to fill the gap the Swiss international has left behind.
Having been given the chance to shine under Andre Schubert, it is understood that the 20-year-old is happy to continue with the club for at least another season.
The youngster developed well last season and it is believed that if he continues to perform in the same way as last season he could sell for much more than Xhaka did.
However, the Bundesliga outfit are wary that Dahoud’s contract is currently set to expire in 2018 and if they fail to agree an extension with him before next summer, they will come under immense pressure to sell for a reduced figure.