Arsenal are believed to be continuing their pursuit of Liverpool striker Luis Suarez.

Reports suggest that Gunners boss Arsene Wenger is preparing a bid in excess of £40million, which would be a club record, to land the Uruguayan.

Arsenal have already failed with offers of £30m and £35m but will according to the Daily Mail, will now lodge a proposal worth £35m up front plus £7 worth of add-ons.

Suarez is currently in Australia with the Reds squad for this week's pre-season friendly with the Melbourne Victory at the MCG.

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