Reds and Gunners on alert.
A trio a transfers could lead former Manchester City striker Mario Balotelli back to England with either Arsenal or Liverpool this summer, according to The Express.
Balotelli is currently under contract with AC Milan, whom he joined from City in January 2013.
Milan are said to be keen on signing Argentina winger Ezequiel Lavezzi from Paris Saint-Germain – a deal that could make Balotelli surplus to requirements at the San Siro.
PSG are likely to be more willing to sell Lavezzi is they are able to land his international teammate Angel Di Maria from Real Madrid.
Arsenal and Liverpool are both monitoring Balotelli’s situation.
Balotelli spent two and a half seasons at City, scoring 30 goals, including 20 in the Premier League.
He only provided one league assist during his time at the Etihad Stadium, but it was a vital one, setting up Sergio Aguero to score the winner in the 3-2 victory over QPR that dramatically secured the title in 2012.