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The 24-year-old YouTube star also said he's confident he will defeat Tyron Woodley - who he is due to fight on 29 August - adding that he believes the opponent is 'harder' than McGregor.
Speaking to The Heard about the mooted fight with McGregor, Paul said: "I think it will happen. Look, I mean, I'm the money fight for Conor McGregor right now.
"There is no other fighter right now who is on a bigger level than me that is calling out Conor McGregor and wants to fight Conor.
"Our team is in touch with his team and there's talks of it actually happening. And people at first thought I was just joking when I said I wanted to fight him.
"But now it's as real as it gets, it's more real than ever and by the way, if we do fight, I'm going to knock him out."
Speaking about his upcoming opponent, Paul went on: "I think Tyron Woodley is a harder opponent than Conor McGregor.
"Conor, I think the fame, the money has got to his head, he's lost that fighters edge, that motivation. And look, he's a smaller guy.
"He's five, what, eight? He's 155-pounds, Tyron Woodley is a 200-pound, massive, explosive guy, so he's a lot more dangerous fighter than Conor McGregor."
This comes after McGregor was defeated by Dustin Poirier at UFC 264, resulting in the Irishman suffering a broken leg.
After this, Jake Paul quickly took to social media to mock McGregor by offering Poirier a $100,000 custom-made 'sleepy' Conor McGregor chain.
aye @DustinPoirier want me to ship this to you?
$100k gift from me
I think you deserve it
- Paul Paul (@jakepaul) July 11, 2021
Showing off the necklace on Instagram, Paul said: "All right, check it. My new $100,000 Nyquil McGregor, Sleepy McGregor chain. Thank you Benny Da Jeweller. Let's go."
He went on: "Don't go sleepy, sleepy. Good night, McGregor. F*** you, b***h."
Paul attended the fight in Las Vegas earlier this month, wearing the chain, and posted a flurry of tweets about McGregor.