Liverpool have finally beaten Arsenal in their battle for promising right-back Javier Manquillo after agreeing terms with Atletico Madrid over his transfer, reports in Spain claim.

IBTimes UK reported earlier this month that the Gunners were very close to completing the deal - with the Spaniard likely to move to the Emirates Stadium.

However, as we revealed at the time, Arsene Wenger's demand for an option to make the deal permanent at the end of the season stalled the final deal as the Spanish giants didn't want to part with one of their most promising talents.

We subsequently reported that Liverpool were poised to take advantage of those problems to join the race to sign the right-back, who Brendan Rodgers tried to sign in January.

And now Spanish newspaper Marca claim the Merseysiders have finally won the race, after Rodgers accepted Atletico's demand to retain control of the 20-year-old's future.

Marca claims Manquillo will join Liverpool on a two-year loan with the Reds having the option to buy him permanently for around £5m – but Atletico will also keeping an option to get him back during the next two seasons if they continue playing in the Champions League.

Liverpool and Arsenal have already been involved in one transfer battle this summer, over Alexis Sanchez, but the Gunners won that particular race. However this time it looks as though Liverpool will win the race, as Marca claims the deal is all but done and will be made official in the coming hours.

The 20-year-old is considered one of the most promising right-backs in La Liga. Even though he has only made 17 appearances for Simeone's side he is a regular for Spain's Under-21s, having already won the Under-19 European Championship in 2012.