A loan deal is not acceptable to the Reds who are still in the transfer market for a central defender and a right-winger and will want to put the Baros fee towards these signings.
Aston Villa are also chasing Baros but Shalke claim to have agreed personal terms with the Liverpool number 5.
"We've agreed things with Baros and his agent," said Shalke coach Ralph Rangnick.. "He wants to come to us."