Arsenal and Liverpool are on red alert for Barcelona midfielder Xavi. The Daily Mail says the midfielder has had seven meetings with the Barca powerbrokers about a new deal but no offer has yet been made.

Xavi, 28, is paid less than Lionel Messi, Thierry Henry and Carles Puyol.

He is looking for a significant improvement with any new contract and source close to Xavi said: "Barcelona seem to think that because he is Catalan he would never leave the club.

"This is a dangerous and arrogant attitude. He is one of the best midfielders in the world but Barcelona do not seem to realise his value."

Arsene Wenger would no doubt welcome the prospect of pairing Xavi with his Spain team-mate Cesc Fabregas. Xavi's arrival would also make Fabregas feel more settled.

Liverpool's Rafa Benitez has signed a number of leading Spanish players and the possibility of a central midfield of Steven Gerrard and Xavi would interest the Anfield boss.