Both clubs are interested in signing Obita.
Reading left-back Jordan Obita is the subject of transfer battle between two Premier League clubs as Arsenal and Liverpool fight for his signature, according to the Mirror.
The 20-year-old has drawn much praise this season for his performances in the Championship for the Royals, making 36 appearances in all competitions.
Obita is a product of the youth system at the Madejski Stadium, but only broke into the first team in 2013 after successful loan spells with Barnet, Gillingham, Portsmouth and Oldham Athletic.
With the ability to also play at left midfield the England Under-19s international has proven to be an attractive prospect for some of the best sides in the country.
The Reds in particular have shown great interest in the full-back, with Brendan Rodgers having sent several scouting trips to watch Obita over the past year.
Rodgers has openly admitted that his priority in the transfer market this summer is improving the team’s defence, after they narrowly missed out on winning the league title to Manchester City.
A large part of that was due to the amount of goals the Merseysiders conceded and the left side of the back four is an area where recruitment is needed.
This is because Jose Enrique has spent most of the campaign injured, whilst loanee Aly Cissokho didn’t do enough to convince Rodgers to make his switch from Valencia permanent.
As impressive as youngster Jon Flanagan has been filling in, the 21-year-old is naturally a right-back and too much reliance on the Englishman could prove costly.
It seems the Gunners will challenge Rodgers for Obita right until the end though.
Read more Liverpool transfer rumours.