West Ham have upped their bid for Loic Remy, dubbed the new Thierry Henry, to £13 million and made their payment structure more attractive - but they now face competition from Arsenal.
Arsene Wenger is keen to bring the Nice striker to Emirates Stadium, just as he brought Henry to Highbury, and would be favourite to pull off a deal providing the Gunners match or better the bid from West Ham.
Liverpool and Spurs have been tracking Remy for a while, but the Nice star would possibily prefer to team up with compatriot Wenger at Arsenal.
The battle has intensified since the Hammers became the first club to enter the bidding process. Liverpool have fallen short of even the Hammers' opening bids, while the price is becoming too rich for Spurs, leaving Arsenal able to nip in and beat West Ham to a deal, if they wish to.
"On Tuesday we received a new proposal from West Ham, for a full payment in cash," Nice chief executive Partick Governatori told L'Equipe.
"If Liverpool want to sign Loic, we need clear rules and commitments from them. But West Ham are hot for the player and we want to complete the transfer before the end of the month."
It is also understood that West Ham have agreed the £4.5 million signing of 22-year-old Argentine striker Milton Caraglio from Rosario Central.
Personal terms have been agreed, the deal has been sealed with the club and now the Hammers are awaiting a work permit. But that is not clear cut as while Caraglio has been called up to the Argentina national team, injury prevented him from making his international debut.
There is an added complication. West Ham don't have a clear run at signing the player as he is still undecided whether he should move to Italy. An Italian club have also met the asking price and there is a chance that the striker could join them instead.