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Liverpool boss Jurgen Klopp is considering a move for £35m-rated Wolfsburg winger Julian Draxler in the January transfer window.
The German attacker is set to leave the Bundesliga club this month and is said to be torn between a move to Paris Saint-Germain and Arsenal.
Both clubs have shown interest in the 23-year-old in the past, with Unai Emery’s side believed to be closer to a deal for the former Schalke midfielder.
However, according to the Times, Liverpool are likely to compete with Arsenal and PSG for the Germany international.
Injury to Philippe Coutinho has left the Reds light in attacking areas, while Klopp’s side are set to lose Sadio Mane for up to four weeks due to the Africa Cup of Nations.
Wolfsburg signed Draxler on a £30m deal 18 months ago and want a profit on the price they paid to Schalke.
Paris Saint-Germain are willing to sell Jese Rodriguez to fund a move and Liverpool are likely to have to move closer to the £40m mark to sign the forward.