Liverpool will give the green light for Raheem Sterling to join Arsenal - but only if Theo Walcott and Kieran Gibbs are included in the deal according to ESPN.
Sterling is believed to have told Liverpool that he wants to leave when the summer transfer window opens. The England international has already turned down the offer of a new contract worth £100,000-per-week while his agent revealed last month that he wouldn't commit his future to the Reds even if they offered him £900,000-per-week.
Arsenal and Manchester City have been suggested as potential destinations for Sterling, who was booed by Liverpool supporters when collecting the young player of the year award at a ceremony last month.
Liverpool will do all they can to stop him from leaving but ESPN reports that they would be open to doing a deal with Arsenal at the right price for the 20-year-old who is out of contract in 2017.
ESPN report that it is Liverpool who have approached Arsenal over the prospect of a deal for Sterling. The Anfield-based club have a hole in their team at right-back with the impending departure of Glen Johnson when his contract expires which Gibbs would fill, while Walcott would be a like-for-like replacement for Sterling.
Previously it was claimed that Liverpool were demanding £60 million for Sterling, although there is no mention from ESPN over whether there would be any cash involved in the deal.
Walcott is out of contract next year and there are more than a few doubts about his future despite the fact he was handed a start by Arsenal boss Arsene Wenger in the Gunners' 4-0 FA Cup win against Aston Villa on Saturday.
The former Southampton winger is said to be holding out on committing his future to the club in the hope of being guaranteed more game-time, although that could be difficult with the likes of Olivier Giroud, Alexis Sanchez and Danny Welbeck all vying for spots.
Liverpool would be crazy to go ahead with a deal like this - if they rate Sterling at £60 million then there is now way Walcott and Gibbs are worth that much.
ESPN quote 'sources close to Arsenal' in the story and they aren't usually inclined to make rumours up, which means it is likely that the Gunners are looking to devalue Sterling by leaking stories that Liverpool have approached them over a deal.
Whichever way you choose to carve it up, this is a transfer saga that will run and run.