Isco would hardly be a regular starter at Anfield but he could prove a cost effective transfer for Jurgen Klopp.
The Reds still haven’t replaced Georginio Wijnaldum, a constant fixture under Klopp before he left on a free transfer to PSG last summer.
And while Liverpool aren’t short on goals, Isco could prove a good rotation option without a significant outlay needed from the club’s FSG owners.
Klopp needs to add fresh faces to his squad this summer and could do much worse than the Spain international in adding creative flair.
While the FA Cup defeat to Nottingham Forest was a painful setback, Gunners boss Mikel Arteta has plenty to be positive about this season.
Arteta is rebuilding a squad full of young, exciting talent and there is every chance of a top four finish this season with midweek European football not an issue.
Martin Odegaard has impressed since permanently signing and Arteta is not short of attacking midfield talent, but the experience Isco brings would bring a different dynamic to his youthful squad.