Gremio forward Luan had looked set for a move to Russian side Spartak Moscow.

But according to Brazilian paper Zero Hora, that deal has now fallen though.

And they add that's left Arsenal and Liverpool now preparing to launch bids for the 24-year-old.

The Brazilian has scored 12 goals in 23 games this season, earning his first Brazil cap alongside his Olympic gold medal in 2016.

It is thought that Gremio want to keep the Brazilian international for another fortnight, when they take on Cruzeiro in the Brazilian Cup.

Liverpool are looking to strengthen their squad for the upcoming European campaign, especially if star man Philippe Coutinho leaves Anfield for Barcelona.

And Jurgen Klopp admitted in May that he would need more strength in depth in order to compete in Europe, before Adam Lallana was ruled out for up to three months with a thigh problem and the potential exit for Coutinho.

“Of course, we have to improve the squad and of course we have to bring in quality, but you can imagine it’s difficult to find better players than ours because they are already really good,” said Klopp.

“That’s the job to do, we need more players of course, because we are in Europe for sure.

“We need a wider squad and that’s what we will have.”

Arsenal are also in the market for new talent, after adding Alexandre Lacazette and Sead Kalasinac to the ranks so far this summer.