Liverpool are reportedly leading the race to sign Birmingham defender Scott Dann this month, although Arsenal on Tuesday were still the bookmakers favourites to sign the Birmingham defender.
Liverpool manager Kenny Dalglish last week refused to rule out making any more signings following the capture of Jose Enrique from Newcastle, despite a busy summer in the transfer market.
Dalglish has already spent around £50million this summer, with Enrique being joined at Anfield by midfielders Jordan Henderson, Charlie Adam, Stewart Downing, plus Alexander Doni.
But a centre-back is thought to be a top priority for the Merseysiders and both they and Arsenal have been linked with £8million-rated Dann in recent weeks.
According to The Sun, Liverpool are now favourites to sign the 24-year-old following the sale of centre-back Sotirios Kyrgiakos to Wolfsburg on Monday.
But as of Tuesday afternoon, it was the Gunners who were favourites to sign the centre-back according to bookmakers, with Sky Bet making Arsene Wenger's side odds-on to complete a deal for Dann before next week's transfer deadline, although there had been support throughout the day for Liverpool.
Reports earlier this month had suggested Arsenal were trying to sign the centre-back for less than his £8m valuation.