Liverpool believe Arsenal are fully capable of launching a huge bid for Raheem Sterling and expect to receive one this week, reports the Daily Express.
Sterling looks set to leave Anfield this summer after he refused to sign a new contract with the club worth £100,000-a-week.
So far only Manchester City have made their interest concrete, launching a £25m bid with a further £5m in add-ons. Liverpool rejected the offer and are standing firm on their £50m valuation, but they expect much bigger offers to arrive this week.
One club they expect to make an offer his Arsenal, who have been accredited with an interest, but were not expected to compete with Manchester City on a financial level.
However, Liverpool thinks Arsene Wenger is simply putting up a front in a bid to drive down the asking price and they fully expect the Gunners to make a sizeable offer.
Such an offer will make things very interesting in the battle for the 20-year-old as Liverpool also believe that the Emirates is Sterling's destination of choice.
The forward, who impressed whilst playing for England against Slovenia yesterday, fancies a return to his hometown in north London and would also fulfil his wish of playing Champions League football.
Sterling's intentions certainly give Arsenal reason for hope in the race for his signature, but it is still unlikely that Wenger will agree to match anything north of £40m.
Meanwhile Manchester City's chairman Khaldoon al Mubarak has already declared his intentions to throw money at Manuel Pellegrini's key targets, meaning an offer in the region of £50m this week.
There is also interest from Manchester United, who themselves were thought to be tempted into making a big money offer. Not only that, but Sterling was reportedly open to the idea of making the controversial move to Old Trafford.
Real Madrid are also keeping a close eye on negotiations, but while Rafa Benitez does not see as much value in Sterling's value as a homegrown star as the Premier League outfits.
As a result, it is looking like a straight fight between Manchester City and Arsenal.
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