Liverpool and Arsenal set to fight for signature of Brazilian star Andre in January

The Reds were said to be interested in Andre in the summer as they went about their midfield rebuild following the departures of Fabinho, Jordan Henderson, James Milner and Naby Keita.

In July, a bid of around €30million (£26m) was tabled for the 22-year-old, but the offer was swiftly rejected by Fluminense who did not want to sell one of their star assets midway through the Brazilian season.

But Fluminense are now resigned to losing the midfielder in the new year, with Liverpool still keeping tabs on the Brazilian international.

Andre recently delivered a sterling performance for Fluminense in the Copa Libertadores final, with the Brazilian side beating Boca Juniors 2-1 to win the competition for the first time in their history.

Fluminense will now be set to feature in the Club World Cup at the end of the year, with the tournament potentially acting as a farewell for the midfielder.

However, the Merseyside club will not be the only club vying for his signature, with Brazilian outlet Globo reporting that both Arsenal and Fulham are also in the race to sign Andre.

Arsenal have suffered a number of injuries in central midfield in the early part of the season, with both Thomas Partey and captain Martin Odegaard enduring spells on the sidelines with injury.

Fulham, meanwhile, could be tempted in a move for the midfielder should Bayern Munich reignite their interest in star player Joao Palhinha.

The Portuguese midfielder travelled to Germany to complete a move on deadline day but the deal collapsed when the west London club failed to source a replacement.

Palhinha has since signed a contract extension, but the German giants are still reported to be interested in the signature of the Portuguese international.