Arsene Wenger has been given the green light to make a decisive £40million bid for Luis Suarez, the Daily Mail reports.
The Liverpool striker is Arsenal's No 1 priority this summer and the Londoners have already seen a £30million offer rejected.
The paper revealed earlier this week how the Gunners had reopened talks with Merseyside chiefs over an improved £35million bid.
But the Anfield club have made it clear that even that will not be enough to persuade them to part with their prized-asset.
An offer of £40million will test a clause in Suarez's contract that could make-or-break his intention to quit Anfield this summer.
Suarez’s agent, Pere Guardiola, argues that the sum triggers a release clause and Liverpool have conceded they would have to listen.
The bid would represent a hugely decisive move from the Gunners hierarchy as they look to land one of their three main targets.
But The Sun reports that the £40million offer for Luis Suarez was refused as Liverpool expect £55m.
Arsenal boss Wenger was ready to match the Reds’ original asking price after his £30m bid was rejected.
But Kop chief Brendan Rodgers said: “When you consider Edinson Cavani has gone for £55m, Luis is up there in that bracket of top talent.