Zakaria Bakkali
PSV starlet Zakaria Bakkali has been a transfer target for Arsenal and Liverpool Reuters

Arsenal and Liverpool have been encouraged in their pursuit of signing Zakaria Bakkali after PSV Eindhoven hinted the player could leave the club in the summer, if he fails to sign a new contract.

The Express claims the 18-year-old has been closely tracked by the Gunners, while their league rivals Liverpool are also believed to be in the hunt for the teenager's signature. His sudden rise in form has seen him break into the Dutch outfit's first team from PSV's youth setup.

Bakkali's brilliant run has seen him being compared to the likes of Chelsea star Eden Hazard by the Belgium national coach Marc Wilmots. The winger's contract runs out at the end of the next season and is yet to sign a contract extension.

The Eredivisie outfit are frustrated with the ongoing situation with Bakkali's contract and have now issued a contract ultimatum.

"We have offered Bakkali the best renewal possible, now it's up to him. We won't run after anyone," PSV chief executive Marcel Brands explained.

Bakkali's aunt and uncle, who act as his agents are weighing other options before agreeing to sign a new deal to extend his stay with the current employers.

The Express believes Bakkali's failure to sign a new deal will see PSV look to offload the player in the upcoming transfer window. A source close to the Dutch club believes the north London club are keen on landing Bakkali in the summer.

"Arsenal have kept an eye on him and are aware that other teams want him, so could move in the summer to buy him," the Express quoted a source as saying.

"Bakkali is a player that Wenger rates highly. Arsenal have kept an eye on him and are aware that other teams want him, so could move in the summer to buy him."

The Gunners could face competition from top European clubs in signing Bakkali, who are keen on snapping the Belgium international's services. Apart from Arsenal and Liverpool, Spanish giants Real Madrid and AS Roma are also reportedly interested in landing the youngster.