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Arsenal and Manchester United have reportedly suffered blows in their attempts to sign Schalke midfielder Leon Goretzka as he poised to join Liverpool instead.

With the futures of both Alexis Sanchez and Mesut Ozil - as well as Jack Wilshere - still unresolved due to their contract situation, the Gunners have been linked with a move for the German international as Arsene Wenger looks to rebuild his squad in case of any departures next month.

The 22-year-old - who is also out of contract with the Bundesliga outfit at the end of the season - is said to have attracted interest from across the Europe's top clubs after impressing at last summer's Confederations Cup in Russia where he scored his first goal for his country and played key role in their success at the tournament.

Free to negotiate with foreign club's in regards to signing a pre-contract deal which would come into effect on July 1 2018, it would appear Goretzka has made up mind as to where he'll be plying his trade next season - and it's not good news for the North Londoners.

(Image: FIFA/FIFA via Getty Images)

According to Bild, the central midfielder is on his way to Anfield and will announce his decision shortly.

Furthermore, the report states that Goretzka has been lured to Merseyside because of his German compatriot Jurgen Klopp and is set to follow in the same path of former teammate Joel Matip who left the Veltins-Arena on a free transfer to join the Reds a couple of summers ago.

Should this rumour prove to be true, then it's a major boost for Klopp following the signings of Naby Keita and Virgil van Dijk, but a blow for Arsenal as they will be left scrambling around for alternative targets in January.

Widely regarded as one of the finest prospects in German football, Goretzka has netted six times in 12 appearances for the national team and is in line to make Joachim Low's final 23-man squad for this summer's World Cup - provided he makes a full recovery from a foot injury - and by that time his new club should be annouced.