Citing the Soccer Fan newspaper Xinhua said Liu who plays for Chinese Super League club Liaoning Zhongyu had failed a dope test on September 26 after a league match against Dalian Shide.
He was reported to have said the drugs were in a drink he was tricked into swallowing during a toast.
'If tested positive players may be banned from playing for not less than two years' the report said adding the exact punishment would be decided by the Chinese Football Association.
Liu is the second Chinese footballer to be found using drugs with defender Zhang Shuai of Beijing Hyundai given a six-month suspension in February after testing positive for the stimulant ephedrine.
Chinese football has been plagued by scandals with players alleging corruption in the Super League and threatening a boycott although they backed down after emergency talks.
Clubs have also complained that the Chinese Football Association has failed to crack down on bribed referees.
China was also eliminated from the 2006 World Cup last week leading to the resignation of coach Arie Haan.
Haan said scandals in China's professional league had played a role in the national team's demise.