Arsenal are ready to go head-to-head with Real Madrid for wantaway Liverpool striker Luis Suarez.The Sun says Arsenal's audacious bid of £40million plus £1 for the striker was rejected by the Reds on Tuesday night.

And Liverpool boss Brendan Rodgers said yesterday: "If Arsenal want the player, then they have to produce the value for the player."

But the Gunners are convinced Suarez is determined to leave for Champions League football.

Arsenal boss Arsene Wenger's main concern is that the Uruguayan would prefer a move to Real Madrid.

But his bold move has trumped the Spanish giants who were planning to wait until the end of the transfer window and then come in with a £25m offer.

They will now have to at least match the £40m bid.