According to Spanish radio station Cadena SER, Liverpool have entered the race for Valencia centre-back Shkodran Mustafi.
The German defender is a top target for Gunners and was expected to move to Emirates by the end of transfer window.
But in a sudden turn of events, Liverpool have taken everyone by surprise with their interest in the Valencia star.
According to the report, Liverpool have the edge over their rivals Arsenal as they are willing to offer Spanish winger Luis Alberto as a makeweight in the deal.
The report suggested that have already started negotiations over a potential deal for the German as they look to seal the deal ahead of Arsenal.
The Reds are in the market to sign a full-back after James Milner suffering an injury during pre-season and Alberto Moreno looked out of sorts during their season opener against Arsenal.
Earlier in the day, Valencia director Garcia Pitarch has confirmed that Shokdran Mustafi is up for sale. The young defender is training alone and away from the squad as the transfer is imminent.
The 24-year old is one of the most sought out players in the current transfer window after an impressive showing at Euro championships this year. He is rated at £30 million by the Spanish club.
Arsenal are set to miss out on one more key target if they don’t act quick.