Arsenal could reportedly lock horns with Liverpool for the signature of Bayern Munich midfielder Thiago Alcantara during this summer's transfer window.

The 29-year-old is out of contract at the Allianz Arena next June and is widely expected to leave the German champions ahead of next season in search of pastures new.

Liverpool have been strongly linked with the Spain international, who has scored three times and registered two assists in 39 appearances for the Champions League finalists this season.

However, according to the Daily Mail, Arsenal have now made an enquiry as they consider the possibility of signing the experienced midfielder in the current market.

The report claims that Bayern want £23m for the former Barcelona youngster but could be forced to lower their asking price if they wish to sell him before the October 5 deadline.

Mikel Arteta's side, meanwhile, are said to be in talks with Real Madrid over another loan for Dani Ceballos.