Liverpool's reported loan move for Bayern Munich left-back Diego Contento now hinges on Arsenal ending their pursuit of his team-mate and Brazil midfielder Luiz Gustavo.

The Gunners are nearing a deal for Gustavo, with the player confirming the interest and his desire to join Arsene Wenger's ranks, while the Reds are understood to be keen on landing Contento. However, Bayern chief executive Karl-Heinz Rummenigge insists only one of them will leave the Bundesliga side this summer.

"We will only let one player leave," the German stressed, when asked whether he will sanction the departures of Gustavo and Contento. It is an understandable call as both players can operate at left-back and Bayern would need a back-up, if David Alaba - their first choice for the role - is injured or suspended.

Diego Contento

Brendan Rodgers is in the market for a player who can provide competition and cover for Jose Enrique on the left of his defence, especially with youngster Jack Robinson away on loan at Blackpool. Deals for Valencia's Aly Cissokho and Benfica's Lorenzo Melgarejo failed to materialise and it is understood that Contento has now emerged as a top target.

The 23-year-old, who graduated from the Bayern academy and joined first team in 2010, has made over 50 appearances in all competitions so far. Meanwhile, even if Gustavo's move to Arsenal falls through, Liverpool are likely to face competition from Werder Bremen for the wing-back's services.

"There was contact with Werder but what matters is what Bayern want," the Bavarians' advisor Ludwig Kogl said about Contento.

The Reds were also linked with a move for Bayern winger Xherdan Shaqiri earlier in the summer. However, Rummenigge had ruled out a sale and stated the club would hold onto as much of their squad as possible, as they prepare for their first season under Pep Guardiloa.

"We play in the Bundesliga, the Champions League, at the Club World Cup. As such we need a squad," he pointed out.