The Reds club have been barred from entering Germany for the fixture on 17 February (AEDT) because of entry rules imposed to combat the coronavirus pandemic.

UEFA's regulations say the home side must find a way of hosting the match or risk forfeiting it as a 3-0 defeat.

Liverpool's German manager Jurgen Klopp said he believed an exemption should have been made for his side to travel.

All Premier League sides are being tested at least twice a week with UEFA also undertaking a testing programme for teams in the UEFA Champions League and UEFA Europa League.

"It's not our decision, nobody from Germany called me and asked me how is the situation in England," Klopp said at a press conference on Friday.

"With all the stuff we are doing here, the record we have with cases, the discipline we show with all the stuff we do, I think it would be absolutely reasonable to make an exception."

British media has reported that Leipzig is in discussions to host the game at Puskas Arena in the Hungarian capital, among other options.

A spokesperson from the Hungarian Football Federation said it would accept a request if one was made.

"Everything is still possible but no decision has yet been made. We have to verify certain points," a Leipzig official said on Friday.

Later, Leipzig coach Julian Nagelsmann said he remained confident the encounter would go ahead.

"I go on the principle that the match won't be cancelled. In any case, we'll prepare as well as possible to try and play well against Liverpool," he said.

The decision from the German authorities also places a question mark over another UEFA Champions League Round of 16 match, as Borussia Moenchengladbach hosts Manchester City on 25 February (AEDT).

Gladbach wants to play the tie in Denmark, sporting director Max Eberl said on Friday.

"We're looking for a venue. We asked Midtjylland, but also to other clubs," he said.

"Now we have to see which is the most appropriate location and what it means financially, but we are responsible for the match."