The Serbian midfielder spent last season on loan at Cardiff and he helped them secure promotion to the Premier League.
It seems that Warnock is keen on holding on to the midfielder for another season.
According to Football Insider, the Bluebirds have agreed on a deal in principle with Liverpool for the player.
Apparently, the two clubs were locked in talks regarding the player since the end of last season and the deal is close to completion now.
Grujic had an impressive spell at Cardiff and another season of regular football with them will help him develop as a player.
At Liverpool, his role will be restricted to that of a squad player and at this stage of his career, he cannot afford to waste away on the bench.
It will be interesting to see whether Cardiff manage to pull off the transfer now. If they do, it would benefit all three parties involved.