Liverpool and Arsenal are monitoring Wolves defender Conor Coady.

The 25-year-old has starred this season for the Black Country club.

It is believed Wolves are preparing a brand new contract for the Englishman to ward off any potential suitors.

They would be Liverpool and Arsenal, according to the Daily Mail. Both clubs are in need for a centre-back this month.

Coady graduated from Liverpool's academy in 2013 before joining Huddersfield Town a season later.