Arsenal are proposing an offer of £20m plus add-ons for Douglas Luiz but Aston Villa say he is not for sale.
Earlier on Thursday it emerged Liverpool had been sounded out over a move for the Brazilian as Jurgen Klopp sought cover for his injury-plagued squad.
But the Reds have now switched their attention to Juventus outcast Arthur Melo and look set to complete a loan deal for the Brazilian by the 11pm deadline.
Arsenal are considering a dramatic deadline day move for Aston Villa midfielder Douglas Luiz
Luiz is in the last year of his deal at Villa and can sign a pre-contract in January ahead of leaving on a free next summer.