The video, which was posted on Facebook, shows Salah with his phone in his hand and later, after moving his vehicle further forward, with both hands on the phone as he sits in traffic.
Liverpool also confirmed that the matter would be dealt with internally and that neither club nor player would be commenting on the matter.
Footage shows the Egyptian surrounded by a number of fans as he sits in his Mercedes-Benz.
Liverpool also confirmed that they had been made aware of the footage and a spokesman for the club said that they had passed it on to the authorities, with any further disciplinary action set to be dealt with "internally".
Salah continues on use device, before wheeling away from traffic on a busy road.
The Reds have alerted the Merseyside Police about a viral video of Mohamed Salah using his mobile phone while driving.
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Salah is an icon on Merseyside, having scored 44 goals in 54 appearances during the 2017/18 season and leading the side to the Champions League final, and is seen as one of Jurgen Klopp's most important players.
"This has been passed to the relevant department.' Penalties for using a phone while driving can include up to six points on the drivers" licence and a fine of £200.
The clip of the footballer is believed to have been taken on Sunday, straight after Liverpool's match against West Ham. Thanks for letting us know'.
Footballers have been criticised in the past for not interacting with supporters, but Lingard proves that stereotype wrong with this brilliant footage from a year ago.