Rodrygo has attracted interest from a number of clubs, but Arsenal now face tough competition from a Premier League rival for his signature.
The Brazilian, who has slipped down the pecking order at Real Madrid, continues to be linked with a move to the Emirates Stadium as uncertainty surrounds his future in the Spanish capital.
football.london understands that Rodrygo's name still remains part of the discussion at Arsenal.
However, new reports claim that Liverpool have now reignited their interest in the Real Madrid star.
According to journalist Sacha Tavolieri, the Reds 'appreciate' and have 'expressed formal interest' in Rodrygo but are yet to make an offer.
This comes after Liverpool rejected a £58.6 million bid from Bayern Munich for Luis Díaz. The Colombian has emerged as a top target for the German club after impressing on Merseyside
But the Reds want to keep hold of the 28-year-old and have reportedly valued him at above £86.8m. However, Diaz has reportedly made it clear he wants to leave the club despite having two years left on his contract.
Should he depart, it could dent Arsenal's hopes of signing Rodrygo, with their rivals gaining the upper hand.
With that said, the 24-year-old has already rejected a move to Anfield back in 2017.
"We didn’t close the deal because I didn’t want to," Rodrygo explained at the time. I wanted to stay at Santos even though the offer was very good.
"The pathway they promised me would also have been very good for my career. I was going to finish my studies in England to prepare for European football. It had always been my dream to play in Europe. Everything was very good, but my desire spoke louder.
"I wanted to stay at Santos and make a bit of history at the club. And that’s what happened: I was able to fulfil my dream of playing for Santos. But it’s true, I almost went to Liverpool."
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