Skysports.com understands Arsenal are ready to rival Liverpool for Birmingham defender Scott Dann.
Dann is thought to be on both club's wanted list after they lost out to Manchester United for Blackburn's Phil Jones.
Arsenal chief Arsene Wenger has made a new central defender one of his top priorities as he looks to shore up his rearguard after they looked suspect at the back last season.
Liverpool boss Kenny Dalglish is looking to bolster his squad as he seeks to get the side back in the top four and Dann figures highly on his shopping list.
Dann has established himself as one of the best young defenders in the country during the last two seasons and his absence through injury in the second half of last season coincided with the club's slump in form and eventual relegation.
Birmingham are resigned to losing their best players following their relegation and Dann is the most valuable asset.
The 6ft 5in central defender is a boyhood Liverpool fan and would jump at the chance of making the switch to Anfield if Liverpool firm up their interest.
However, Arsenal are eagerly monitoring Dann's situation and are ready to make a move for the 24-year-old.
Wenger will be hoping the incentive of Champions League football could help him win the race for Dann if Liverpool fail to push through a move for the highly-rated defender.