The Premier League new-boys have ambitiously offered to pay an initial £2m loan fee before making a permanent deal next summer.
Liverpool are thought to be willing to listen to offers for the permanent sale of Carroll, who they signed from Newcastle in a record £35m deal under Kenny Dalglish in January 2011.
Brendan Rodgers has succeeded Dalglish this summer and is ready to sell in order to raise money for new signings, including his £15m-rated former Swansea colleague Joe Allen.
Carroll has endured a difficult time at Anfield since becoming the most expensive British footballer in history and he now appears to be surplus to requirements.
Sam Allardyce's West Ham failed in an original approach to sign the England international solely on loan earlier this summer but have returned with a permanent option.
Liverpool want closer to £20m as they aim to recoup as much as possible on Carroll and his wages, which are reportedly close to £80,000-a-week, but the fee would represent a record deal for West Ham.
The most the Upton Park club, who won last season's Championship play-offs, have paid for a player in the past has been £9m for Savio Nsereko in January 2009.
And West Ham co-owner David Sullivan's son, Jack Sullivan, has added to the rumours by saying onTwitter: "Dad is working on the biggest signing in the history of the club - twice as big as anything the club have done before!"
West Ham are also reportedly hoping the friendship between former Newcastle team-mates Kevin Nolan, now West Ham captain, and Carroll can help influence any potential move.
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