Liverpool have made a formal £37m move for Arsenal-linked Romeo Lavia, but Southampton have already turned the offer down.

David Ornstein reports for The Athletic that Southampton have rejected a £37m offer for Romeo Lavia from Liverpool, with the Saints looking to bring in £50m for the midfielder.

Personal terms aren’t expected to be an issue, but there’s clearly still a valuation gap between the two clubs.

Southampton already received and turned down a £50m bid for Lavia from Chelsea, but that was last September. The situation has clearly changed since then, with the south-coast side now relegated to the Championship.

Ornstein adds that Liverpool are set to return with an improved offer, and there’s a high chance the deal gets done, though Chelsea are still in the race.

Liverpool have taken the lead for Lavia recently, despite plenty of links to other clubs in the big six.

There have been reports that Chelsea could join Liverpool’s pursuit if they fail to sign Moises Caicedo, and Arsenal and Manchester United remain in the wings for the deal.

In Arsenal’s case, the suggestion is that they’d only go in if they sell first. With no outgoings imminent and Liverpool pushing to close a deal, that makes a move unlikely.

Manchester City don’t appear to be involved, but they would earn up to 20% of the eventual transfer fee through a sell-on clause.

Lavia joined Southampton from City last summer, with a £40m buyback clause in his contract.

However, that clause is only active from the summer of 2024, so this summer represents an opportunity for another club to take advantage.