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Szoboszlai will bolster Jurgen Klopp’s midfield options after Alexis Mac Allister was already brought in from Brighton.
But rather than play in the centre of the park, Cascarino reckons that the 22-year-old could operate on the right-hand side where Mohamed Salah usually plays.
And the Egypt international could be moved into a centre-forward position as a result.
Speaking to Natalie Sawyer on talkSPORT’s Sports Breakfast, the former Chelsea star said: “I would have a three in midfield, Szoboszlai coming in, I don’t think he will come in as a midfielder, I think he will play wider.
“You have got Alexis Mac Allister and you have got Trent [Alexander-Arnold] and it will probably be Fabinho, as of today. I don’t think Thiago will play as much due to his injuries.
“Mohamed Salah might up playing the centre-forward position, [Darwin] Nunez is no guarantee to play at Liverpool.
“He hardly played toward the end of the season, he got very little game time.
“Salah might go centre-forward, I know he has played on the right for a very long time but I could also see him playing in that position if needed.
“He has always got chances, he has got a great goal record and I wouldn’t be surprised. [Diogo] Jota has played in that position, Luis Diaz on the left, Gakpo as well.
“Klopp is going to be wide open to a lot of things. The signings that have come will give Liverpool a change of style.
There are loads of choices for Klopp. I do think it will be very different to the Liverpool we saw this year as Liverpool were so easy to play against in numerous games.”
Liverpool have lost a number of players in midfield with the departures of Alex Oxlade-Chamberlain, James Milner and Naby Keita.
Mac Allister will likely fill one position, but whether the Reds return to the transfer market for another midfielder remains to be seen while Alexander-Arnold could provide a solution.
Cascarino added: “They ended the season really well, Trent [Alexander-Arnold] was playing in that [midfield] position.
“Now whether Klopp still has that thinking in his head where he is going, ‘do you know what, I am seriously considering playing Trent in a midfield area’.
“Trent can see passes that very few can, Kevin de Bruyne can see passes for fun, Trent is not far behind him. I’ll be very intrigued to see how Klopp goes with him.”