The Guinean is top of the Reds' midfield wanted list even with a possible price tag of up to 50m euros.
RB Leipzig finished runner-up to Bundesliga champions Bayern Munich last year but their place in the Champions League was in doubt because of Red Bull's ownership of Austrian champions Red Bull Salzburg.
It had been feared that UEFA regulations concerning dual ownership of clubs would force Leipzig out of the competition, with Salzburg taking priority as a league champion.
It had been presumed that Keita would be more likely to leave the German club if they miss out on Europe's elite competition.
However UEFA has now deemed it acceptable for both clubs to enter the Champions League.
A statement said: "The adjudicatory chamber of the UEFA Club Financial Control Body (CFCB) has decided to accept the admission of both FC Salzburg and RB Leipzig to the UEFA Champions League 2017/18, having found that Article 5 (Integrity of the competition) of the competition regulations is not breached.
"Following a thorough investigation, and further to several important governance and structural changes made by the clubs (regarding corporate matters, financing, personnel, sponsorship arrangements, etc.), the CFCB deemed that no individual or legal entity had anymore a decisive influence over more than one club participating in a UEFA club competition.
"This decision may be appealed to the Court of Arbitration for Sport within 10 days...
"The CFCB will continue to monitor both clubs to ensure that integrity rules are respected going forward."
That could work against Liverpool's ambitions with Keita already having expressed his desire to play at the top level.
“Every player dreams of playing in it and we will do everything in our power to make a difference in the tournament," he said earlier this year.
“The fact that we managed to qualify directly for the group stage of the Champions League is fantastic for our club.”
Source: Liverpool Echo
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