The England international has been identified as an important potential addition to Jürgen Klopp’s squad and would be a replacement for Sadio Mané when he plays for Senegal in the Africa Cup of Nations next month.
Oxlade-Chamberlain would be expected to command a fee of between £20 million to £25 million, it is believed, and has just one more year left on his contract at Arsenal after this campaign.
The 23-year-old has been given glowing references of the way Klopp works by fellow internationals Jordan Henderson and Adam Lallana while away with England and Liverpool want to reinforce their Premier League title challenge.
Oxlade-Chamberlain has scored six goals, and provided six assists, for Arsenal this season, his most productive return for the club, but is yet to complete 90 minutes. It is understood he has grown increasingly frustrated at not being given the chance to establish a regular place in the team.
Oxlade-Chamberlain is yet to play 90 minutes for Arsenal this season
The midfielder, who signed from Southampton in 2011 for an initial £12 million, is popular with the Arsenal supporters and would be torn about the prospect of leaving the club. However, a move to Liverpool would appear tempting not least because Oxlade-Chamberlain has yet to discuss a new deal at Arsenal.
He is one of several Arsenal players – headed by Alexis Sánchez and Mesut Özil - with less than two years left on their contracts and while manager Arsène Wenger has indicated that talks will take place there is not yet an agreement.
Pundit and former Arsenal striker Ian Wright recently highlighted that Oxlade-Chamberlain is growing frustrated at being substituted – and it was also a surprise that he was only on the bench for the key league match away to Manchester City.
Liverpool also have Daniel Sturridge as a replacement for Mane
City are one of several leading clubs, along with Chelsea, who have previously considered making a move for Oxlade-Chamberlain but it appears that Liverpool are now the most likely to test Arsenal’s resolve to keep him when the window opens.
Liverpool, just six points behind league leaders Chelsea, have coped well without the injured Philippe Coutinho, who is close to returning, but Mané will be absent for the Africa Cup of Nations, which kicks off in Gabon on Jan 14.
Mané will fly out after Liverpool’s league game at Sunderland on Jan 2 and should his nation progress until the latter stages will be absent for four league games plus his team’s two-legged EFL Cup semi-final against his former club, Southampton.
Liverpool have Daniel Sturridge as a replacement and do not intend to countenance any offers for the striker in the window but may also want to strengthen their options with Oxlade-Chamberlain versatile enough to play in a number of midfield and attacking positions.