Alex Oxlade-Chamberlain has rejected a £40m ($51.7m) move to Chelsea despite an agreement over the fee between the Blues and Arsenal.
The Gunners midfielder is said to have rejected the transfer after learning that Antonio Conte was also looking to use him as a wing-back, which is similar to his current role at Arsenal.
Oxlade-Chamberlain's main reason for wanting to leave the club is to play more regularly in his preferred central midfield role. In fact, he reportedly turned down an offer of a lucrative new deal at the Emirates, reported to be worth around £180,000-a-week, and is keen to move on this summer.
The 24-year-old is said to be interested in joining Liverpool instead. However, Jurgen Klopp's side are yet to make a concrete offer for his services.
According to BBC Sport, the Reds are expected to make a move for the England international's services but it will be considerably lower than Chelsea's bid.
Arsenal are keen for a deal to be completed before the transfer window closes on Thursday night (31 August), but will hold out for the right offer before making their decision.
However, the BBC report also claims that should a move fail to materalise this summer, the English midfielder will see out the final eleven months of his contract and leave on a free transfer next summer.
Oxlade-Chamberlain has started all the games for Arsenal this season, but has been played out of position at left and right wing-back.
Antonio Conte has made the Arsenal midfielder one of his priorities as the transfer window nears its end.
The Italian coach wants to bring in competition for Victor Moses in the right wing-back position and has identified the versatile Oxlade-Chamberlain as the perfect candidate to challenge the Nigerian for a place in the starting XI.