Liverpool Transfer News: Lucas Vazquez on Reds' Radar, Jerome Sinclair Rumours

Liverpool will reportedly face competition from Arsenal this summer as they look to cut a deal for Real Madrid winger Lucas Vazquez, but the club have received a boost regarding the departure of Jerome Sinclair.

Spanish outlet Fichajes reported the Gunners will rival their Premier League peers for the 24-year-old's signature, both hoping to offer him improved first-team chances in England's top flight (h/t Liam Spence of Daily Express).

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Reds manager Jurgen Klopp has been "watching Vazquez for some time" and monitored his progress on loan at Espanyol, but interest raised by Arsenal may throw a spanner in his plans to complete a move valued at £10 million.

Vazquez's first-team involvement has increased significantly this season, and the official Real Madrid Twitter account recently detailed his upward spiral in attacking form, starting in four of his last seven league appearances:

According to Spence, Bayern Munich are also among the parties interested in taking the Castilla graduate away from Madrid this summer, but Real are understood to not be considering his sale.

Klopp has enforced a higher work rate in the Liverpool squad this season and focused on a more intense approach across the board, and Goal's Ben Hayward noted Vazquez could fit in with the philosophy:

The competition for a place out wide at the Santiago Bernabeu is rife, with the likes of Gareth Bale, James Rodriguez and, of course, Cristiano Ronaldo accounting for a bulk of the priority spaces in attack.

That being said, Los Blancos coach Zinedine Zidane appears to have taken a shining to Vazquez, and Liverpool may struggle to tempt the player to Merseyside just as his Real career begins to blossom.

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There may be room for an addition in Liverpool's attack, too, after the Daily Mail reported Sinclair is poised to move to Watford when his contract expires at the end of this season (h/t Joe Short of Daily Express).

However, the Reds stand to make up to £5 million off the exit of their homegrown player if the transfer goes to tribunal. Bleacher Report's Jack Lusby pointed out the possible mechanics of a move to Watford in the January transfer window:

Sinclair, 19, has made two senior appearances for Liverpool this season and scored one goal against Exeter City in the FA Cup, but his failure to make a Premier League appearance suggests the parties are ready to cut ties.

Should Watford move ahead with a deal, the Merseysiders may come up against their former academy striker next season, but the Hornets will have to pay a compensation figure in order to land the teenager's signature.