Winston Reid
Liverpool are leading the race to sign West Ham United defender Winston Reid (R) in January [Reuters]

Liverpool are reportedly leading the race for West Ham United's wantaway defender and Arsenal target Winston Reid.

According to the Mirror, the Hammers defender, who is on the final year of his contract is stalling on a new deal as he is said to be keen on making a move to a bigger club in the Premier League.

The New Zealand international has been one of the stars for West Ham this season and his form has helped his club make their best start to a Premier League campaign. They are currently in fifth place after 14 games above the likes of Arsenal, Liverpool and Tottenham Hotspur.

Liverpool have struggled when it comes to their defence this season, and even the arrival of Dejan Lovren from Southampton this summer has seen them struggle to keep too many clean sheets and Brendan Rodgers has identified the Kiwi defender as a potential target to ease their problems at the back.

Apart from the Reds, Premier League rivals Arsenal are said to be keen to sign Reid, but off late Arsene Wenger has turned his attention to versatile Ipswich Town defender Tyrone Mings paving a clear path for the Merseyside club to make their move.

Sam Allardyce is keen to hold on to the defender, and had earlier revealed that his non-commitment is a cause for concern for both him and the owners of the club.

The former Bolton manager has now admitted that his contract situation must be resolved soon as the debate of will he or won't he sign has gone as far as it can go.

"His contract situation is an on-going factor between the owner and his agent. I would imagine one or both are going to come to the conclusion this has gone as far as it's going to go and can't go any farther," Allardyce said, as quoted by the Mirror.