Liverpool Transfer News: Reds Miss out on Ousmane Dembele, Mario Gotze Rumours

Liverpool manager Jurgen Klopp has lost out to former club Borussia Dortmund in the race to sign Rennes forward Ousmane Dembele. Klopp is also facing a battle for one-time star pupil Mario Gotze, after Premier League rivals Arsenal emerged as contenders for the Bayern Munich attacking midfielder's signature.

Dembele turned his back on interest from Anfield and has instead signed for the Bundesliga side in Dortmund, according to the club's official site (h/t Rhys Turrell of the Daily Star).

Klopp and the Reds were thought to have a strong chance of signing the prolific 18-year-old. Klopp had even spoken to the Ligue 1 Young Player of the Year about moving to England's top flight, per the Daily Star's Jack Wilson.

Ed Aarons of the Guardian had suggested Klopp's presence appealed to Dembele:

But the player's decision leaves Liverpool having to reassess a search for some much-needed reinforcements up front. Klopp has plenty of options at striker but none that truly inspire confidence.

Target man Christian Benteke doesn't seem like the right fit for the manager's fluid, fast-breaking style of play. Forward Daniel Sturridge would be thanks to his pace and assurance in front of goal, but the England man still has trouble staying fit.

The same is true for Divock Origi, who combines the brawn of Benteke with the quickness of Sturridge. But the Belgian is currently recovering from an ankle injury.

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What Klopp needs is a striker with the pace and technical quality to both score and provide goals on a prolific basis next season.

Arsenal Ready to Challenge for Gotze

Gotze would offer plenty of flair and creativity in the final third, but signing him may not be as easy as Klopp might have thought. That's because Arsenal are now interested in the 23-year-old World Cup winner, according to German publication Suddeutsche Zeitung (h/t the Daily Star's Rhys Turrell).

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Klopp might have thought his path was clear after incoming Bayern manager Carlo Ancelotti reportedly told Gotze he's free to leave this summer, per James Pearce of the Liverpool Echo.

Gotze worked well with Klopp when the pair were at Dortmund, so a reunion seems inevitable to many. Among them, Norwegian journalist Jan Aage Fjortoft:

But this isn't the first time Arsenal have considered moving for Gotze. A £30 million bid was mooted by the Daily Mail in 2011.

At his best, Gotze boasts the intelligence, technical quality and eye for goal to be a major asset in the type of game Arsene Wenger loves. The Arsenal manager routinely builds his squads to emphasise the talents of creative midfielders.

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But so does Klopp. He'd find room for Gotze even in a group already containing Philippe Coutinho, Adam Lallana and Roberto Firmino.

Klopp's presence would give Liverpool the inside track in any race to sign Gotze. Yet, Arsenal's place in next season's UEFA Champions League could sway the player.

Liverpool's only route to Europe's premier club competition can come from winning this season's UEFA Europa League, no easy task when facing a very capable Sevilla side in the final.

Ultimately, the extent of Gotze's desire to again work with a manager under whom he played his best football with will determine how this potential transfer chase plays out.

If Liverpool do sign Gotze, Klopp must make sure his platoon of creative players have better strikers to supply next season. So now's the time to explore Dembele alternatives.