Arsenal passed up on the opportunity to sign Arthur Melo from Juventus in January, but now Liverpool look set to take advantage of that decision.
The Gunners were heavily linked with completing a deal for Arthur earlier this year, but decided against pursuing a deal with a focus on preparing for the summer transfer window. The Brazilian midfielder has previously played for Barcelona but has struggled with injuries throughout his career.
Arsenal are thought to be targeting a central midfielder signing as a 'priority' on Deadline Day following injuries to Thomas Partey and Mohamed Elneny. Danilo and Douglas Luiz are rumoured to be the Gunners' main targets, but their Brazilian compatriot that looks set to secure a move to Premier League rivals Liverpool.