Liverpool are reported to be in negotiations with Valencia over what could be a sensational late swoop for ex-Everton defender Shkodran Mustafi. The German international is thought to be on the verge of joining Arsenal but the Gunners appear to have been growing hesitant.

The shock revelation comes from SER Deportivos Valen, with Valencia rumoured to hold interest in Liverpool outcast Luis Alberto as a possible part exchange.

Former Barcelona B star Alberto, who enjoyed a successful season on loan at Deportivo La Coruna in 2015/16, has only played a handful of times for the Reds and isn't expected to feature in Jurgen Klopp's plans this season.

Despite recent reports suggesting that Arsenal have agreed personal terms with Mustafi, it is thought that the north London club are still yet to agree a fee with Valencia.

Valencia director of football Jesús García Pitarch, who SER Deportivos say has been talking to Liverpool, has publicly stated that the club will need to sell before they can focus on their own incoming summer transfer business.

Many took his words to be a positive sign for Arsenal, but that was before considering the alleged interest from Anfield.

"We're above the FFP guidelines, that's the reality, and as of today, the four players we've signed cannot be registered, meaning we need to reduce the cost in a significant manner to register the players and sign a centre-back, which is a priority in case one of the ones at our club leaves," Pitarch said.


"Obviously, if they don't leave, we can't sign a new one not only because of financial restrictions, but also because it wouldn't be logical to have five or six centre-backs. We need to continue with a reduced budget, but if there's an exit, we need a new centre-back."

Others have claimed the Spanish reports are false and that there is no Liverpool interest at all.

To continue the discussion on Twitter follow @jamiespencer155