The 26-year-old has attracted growing attention following his performances in Portugal, with Liverpool understood to be assessing options to strengthen the left side of their defence.
Araújo joined Sporting from Mexican side Toluca in 2024 and has developed into an important member of the Lisbon club's squad. His ability to operate as a left-back or further forward on the flank adds to his appeal for clubs looking for versatility.
Liverpool are reported to have been impressed by his performances and are keeping track of his progress as they consider their recruitment plans under Andoni Iraola.
However, any attempt to bring him to Anfield would involve significant negotiations. Araújo is contracted to Sporting until June 2030, while his reported release clause stands at €80 million.
That figure gives the Portuguese club considerable protection, particularly with several Premier League sides also monitoring the defender.
Manchester United, Chelsea and Arsenal have all been linked with the Uruguay international. Their interest means Liverpool would face competition from domestic rivals if they decided to turn their monitoring into a formal approach.
Sporting are in a strong negotiating position and have no obvious reason to accept a reduced offer for a player tied to the club for several more seasons. The reported release clause also provides a clear indication of the financial commitment potentially required to secure his services.
For Liverpool, the interest comes as they assess how to develop their squad and address the left side of the defence. Araújo's experience in Portugal and versatility make him an option worth watching, but there is no indication in the available reporting that a deal is close.
The situation is therefore at the monitoring stage, with Sporting holding the key to any potential transfer and several Premier League clubs keeping the Uruguay international on their radar.