Arsenal have joined the battle for Atletico Madrid striker Diego Costa. The Daily Star says sources in Spain claim the Gunners are keeping a close eye on the 25-year-old, who was wanted by Liverpool during the summer transfer window, and more recently by Chelsea.

Costa revealed he nearly joined Liverpool, admitting it was his loyalty to the Spanish club that prevented a move to Liverpool.

He said: "I was close to leaving, Liverpool are a great team, but after fighting so hard and overcoming difficulties to get my place at Atletico, how could I leave?

"I thought that it was very important for me to continue growing in this club and to play here for many years."

Costa is thought to be valued at around £30m by the high flying La Liga side.

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