Arsenal midfielder Alex Oxlade-Chamberlain has turned down a move to Chelsea despite the two clubs agreeing a fee for his services, sources close to the player have told ESPN FC.
Sources have also told ESPN FC that Oxlade-Chamberlain, 24, is holding out for a move to Liverpool, with the Reds interested in signing the England international, as originally reported by the BBC.
Liverpool have yet to make a bid for him, but with Chelsea now seemingly out of the race for the player, it clears the path for the Reds to swoop in before Thursday's transfer deadline.
Chelsea looked set to land Oxlade-Chamberlain after they agreed a fee in the region of £35 million with Arsenal, but the player has opted to snub the overtures from Stamford Bridge.
Oxlade-Chamberlain, who is currently away on international duty with England, is in the final year of his contract at Arsenal and has so far rejected the club's offer of a new deal.
Arsenal are prepared to sell Oxlade-Chamberlain rather than risk allowing him to run down his contract and leave for nothing next summer.
Oxlade-Chamberlain, who has made 198 appearances for Arsenal since joining from Southampton in 2011, has started every game so far this season in a wing-back role.