The captain is in contention to figure at Anfield in the second leg of the last-16 tie, having been ruled out with a hamstring complaint since the first meeting in Spain last month.
Jürgen Klopp told his pre-match press conference at Anfield: “Hendo is ready but what we do with that, I don’t know… or maybe I know and I don’t say!”
Meanwhile, Andy Robertson is also set for a return.
The defender was left out of Liverpool’s squad for Saturday’s win over Bournemouth as a precaution but is available to face Atletico.