This afternoon French publication L’Equipe claimed Arsenal were on the verge of completing a blockbuster loan deal for Coutinho.
But fresh reports now suggest there are four Premier League club monitoring the Brazilian’s situation – with Arsenal’s north London rivals Tottenham right in the mix.
The transfer merry-go-round is heating up with the window set to close at 5pm on Thursday.
Manchester United are right in the thick of things as they look to bolster their attacking ranks.
Spurs midfielder Christian Eriksen has been heavily linked with a move to Old Trafford.
And that could lead Mauricio Pochettino’s side into making a move for Coutinho.
However, the Red Devils also have their eye on the former Liverpool man, according to talkSPORT.
Ole Gunnar Solskjaer is fighting a battle to keep hold of Real Madrid target Paul Pogba and Coutinho is seen as a possible replacement.
Jurgen Klopp is also said to be keen to bring his former midfielder back to Anfield.
Barcelona have reportedly told Coutinho he is free to leave and the 27-year-old is keen on returning to the Premier League.
The La Liga giants will likely demand a loan fee to cover the instalments they are still paying Liverpool.
Barcelona signed Coutinho for £142m 18 months ago but he failed to make a substantial impact at the Nou Camp.
He looks set to be one of a number of stars who could leave this month.
Ousmane Dembele is also expected to find a new club before the European transfer window shuts on September 2.
Ivan Rakitic and Samuel Umtiti have also fallen down the pecking order of Ernesto Valverde’s side.
If those players move on it could open up enough funds to tempt Paris Saint-Germain to part with Neymar.