The Reds have turned their attention to Costa but insist it is not a Suarez replacement.
There could be further woes for Arsenal as Liverpool plan to activate the release clause of Gunners target Diego Costa of Atletico Madrid and sign the player themselves, according to the Mirror.
Arsene Wenger has been keeping an eye on the Brazilian, who could follow former striking partner Radamel Falcao out of the door at the Vicente Calderon Stadium, with the club having bought David Villa and Leo Baptistao.
Costa had an impressive season in Spain last year, scoring 20 goals and providing 15 assists in all competitions which included being named the top-scorer in the Copa Del Rey – a tournament Atleti won.
The Brazil international spent the previous year on-loan at Rayo Vallecano, but looked good for the third-placed Spanish side in 2012/13 and also starred on the European stage.
Costa is a versatile attacker, preferring to play on the left-wing but equally as capable on the right or through the middle due to the forward’s willingness to show physicality.
The Atletico man would become the Reds’ third signing from La Liga this summer following the arrival of Iago Aspas and Luis Alberto, but the Merseyside outfit are keen to stress the South American would not be a replacement for Luis Suarez.
Liverpool are determined not to let Suarez leave Anfield and the Gunners’ continued pursuit of the Uruguayan has angered the club – meaning to scupper Arsenal’s chances of signing Costa would taste a little more sweet for the Reds.