Liverpool are prepared to table £25m for the Saints midfielder if their efforts to sign Radja Nainggolan prove unsuccessful.
The Merseyside club have been desperate to complete the signing of the Roma midfielder but are reluctant to match Manchester United’s £30m bid.
And reports have now surfaced that Brendan Rodgers will turn his attention to Southampton’s Morgan Schneiderlin if they are unable to sign the Belgian international.
This news will come as a blow to Arsene Wenger, who has looked for some time now in pole position to bring in the defensive midfielder and would likely have done so in the summer.
Southampton are now in control of who gets their star man and the two English giants could be faced with a bidding war.
By Phil Wellbrook