Liverpool are preparing a second bid for Alexander Isak after seeing their first offer rejected by Newcastle United, according to reports.

David Ornstein broke the news for The Athletic on Friday afternoon that Newcastle United had rejected an official bid from Liverpool for Alexander Isak.
Liverpool had already previously made an informal approach, but they’ve now formalised their interest with an offer.
Newcastle have tried to get Isak to extend his contract, they’ve encouraged him to stay through his teammates, and they’ve offered him a release clause option for next summer. But the player remains keen to leave, despite his club’s stance that he’s not for sale.

In terms of the value of Liverpool’s opening bid, Fabrizio Romano reported that it’s a £120m package, but Sky Sports News claim the initial offer was £110m plus less than £10m of add-ons.
Sky add that Liverpool are already preparing a second formal offer, so they clearly haven’t given up on the signing just yet.
As it stands, Isak is not taking part in Newcastle’s pre-season preparations. Officially, he has a minor injury, but Ornstein reports that his absence is his choice, not a decision imposed on him by the club medics.

Arsenal had shown an interest in Isak in the past, but the Gunners moved on to other targets, seemingly under the impression the Sweden international wasn’t available this summer.
That may still turn out to be true, with little evidence that Newcastle are ready to accept a sale. The only information that points in that direction is that the club have started to pursue striker signings of their own, such as Benjamin Sesko and Yoane Wissa.
Neither transfer is on the verge of completion, nor even particularly close. Brentford don’t want to sell Wissa and RB Leipzig have set a high asking price for Sesko, with Newcastle facing competition from Manchester United on that front.

On top of that, Newcastle’s valuation of Isak is supposedly £150m. Even if he does turn out to be available, Arsenal would have had to spend almost their entire transfer budget just for that one signing.
Some fans may say it would have been worth it, but the club has rarely operated that way in the past.
The Gunners certainly aren’t in the race anymore, and it’s just a question of whether Newcastle buckle and sell to Liverpool or not.