Liverpool and Arsenal are chasing Valencia starlet Paco Alcacer.

The Sunday Mirror says Arsenal and Liverpool face a major fight to sign Valencia ­superstar Alcacer ­from Valencia after the Spanish side ­began moves to tie him down to a long-term contract.

Alcacer, 18, is rated one of the best young players in Europe and has been ­attracting interest from a host of European clubs.

Barcelona and Bayern Munich have also been linked with a move for the Spanish forward and have sent scouts to see the ­youngster in action.

Alcacer is reported to have a buy-out clause of £8million in his contract, but Valencia president Manuel Llorente is ­determined to keep him at the club and hopes they can agree a long-term ­contract.