As noted by BBC Sport's David Ornstein, the Blues had agreed a fee of £40 million for the England international. However, the player has opted against a switch across the capital, with Ornstein noting he "believes the Blues planned to use him at wing-back, and his primary reason for wanting to leave Arsenal is to play in central midfield."
According to James Olley of the Evening Standard, the Reds have made their first move for the midfielder:
James Olley @JamesOlley
Understand #lfc have had an opening offer for Oxlade-Chamberlain rejected by #afc. Lower than #cfc's £40m, circa £30m. Ball in #lfc's court.2017-8-30 09:30:17
"Should a move not transpire, Oxlade-Chamberlain will see out the final year of his contract before potentially leaving on a free transfer next summer," added Ornstein.
The decision from the Arsenal man represents a surprise, as the champions would have potentially provided him with a platform to reignite his career.
ESPN FC's John Brewin isn't sure why the midfielder wants to operate from a central position:
John Brewin @JohnBrewinESPN
Oxlade-Chamberlain finally finds position he is good at (wing-back). Decides he wants to play in central midfield instead.2017-8-29 23:10:44
Indeed, in recent months, Oxlade-Chamberlain has blossomed in the spot on the right flank for the Gunners.
As a wing-back he's been allowed to raid forward, get crosses into the box and knit play together in the final third. It allowed him, for the first time in a while, to cement his place in the Arsenal side ahead of what looks to be an increasingly inevitable sale this month.
It'll be fascinating to see how Liverpool go about pursuing the player now, especially given they are well stocked in central midfield; Naby Keita will arrive from RB Leipzig next summer, too. It means if Oxlade-Chamberlain does want to play in central midfield every week, he may have to set his sights a little lower.
Time Running Out on Thomas Lemar
According to Dominic King of the Daily Mail, Liverpool are in a "race against time" to sign Thomas Lemar from Monaco.
It's suggested in the piece that the Reds may have to agree a deal prior to the final day of the transfer window, having offered £74 million to the French champions, as well as Divock Origi on loan for the campaign.
According to Alex Richards of the Daily Mirror, the Reds have given up the pursuit of the Monaco man to focus on the signing of Oxlade-Chamberlain.
King noted that Lemar's deal was complicated further by France's World Cup qualifying match against the Netherlands on Thursday, a fixture he is expected to be involved in.
"The implication, then, is that Liverpool would not be able to conduct a medical in the final hours before the deadline and they will have to move quickly," King added.
Neil Atkinson of The Anfield Wrap believes the Reds should be looking to get in both Lemar and Oxlade-Chamberlain before the window closes:
Neil Atkinson @Knox_Harrington
Oxlade-Chambo. Would have him. Would also sign Lemar. Would look to box Van Dijk. Can't have too many with a fixture list like this looming.2017-8-29 23:14:31
Given the sums aforementioned, it's clear Liverpool rate Lemar highly. And so they should, as the midfielder was sensational during the 2016-17 season, as Monaco swaggered to the Ligue 1 title. His brilliant work on the left side of midfield was critical to the team's attacking incision.
If Liverpool were to pull this one off, it'd be a tremendously exciting acquisition, as Lemar would add another blistering dimension to the team's already-stellar attack. It appears they will need to move quickly to get this deal done, though.