Liverpool and Arsenal are battling it out for up-and-coming German midfielder Kerem Demirbay.

Sources in Germany say the Premier League giants are among a host of clubs clubs chasing the Hoffenheim star.

The 24-year-old's impressive form has seen him win two caps for Germany after becoming a regular for Julian Nagelsmann's side, report football.london

Since joining from Hamburg in 2016, Demirbay has developed into one of the most highly-rated midfielders in the Bundesliga.

The player has scored two goals and provided an assist in 15 appearances this season, and it is this form which has caught the eye of major clubs across Europe.

Jurgen Klopp and Arsene Wenger shake hands in match back in December (
Image:
Getty Images Europe)
Kerem Demirbay of Hoffenheim (right) has emerged as a target for Arsenal and Liverpool (
Image:
Simon Hofmann)

According to Sport Bild , Arsenal and Liverpool are both eyeing a move for the midfielder, with both clubs agreeing to meet the £28m asking price.

The report also claims the Premier League sides have already held talks with Demirbay's agent and have told him they are willing to meet the release clause that was inserted into his contract last summer.

Arsenal's Jack Wilshere reacts during the League Cup semi-final football match against Chelsea (
Image:
AFP/Getty)

Elsewhere, Liverpool and Arsenal could be set for a summer transfer collision of another type, with reports that Jurgen Klopp's side are keen to sign Jack Wilshere if the midfielder rejects a new deal at the Emirates Stadium.

According to the Mail , the Gunners have offered Wilshere new terms, but on reduced basic wages with bonuses based on appearances and performance, due to his poor injury record.

But Liverpool boss Klopp is reportedly ready to offer him a deal with the same salary as he is currently on in an effort to lure him to Anfield.