The 23-year-old spent last season on loan to Nacional after failing to impress at Anfield since arriving in 2011.
Coates told The Guardian: "I told Liverpool that I want to play and if I don't have the chance there, it would make sense to look for another way. I wouldn't mind being loaned and continuing to play in the Premier League. I'd like to play in England."
Coates is expected to start for Uruguay in tonight's match against England.