Arsenal are keeping a close eye on Rio Ngumoha as the Liverpool teenager's contractual situation remains unresolved, according to sources cited by ESPN FC's Transfer Talk.

The Gunners are monitoring how talks between Ngumoha and Liverpool progress, with the north London club positioning themselves to take advantage should a deal between the player and his current club break down.

Ngumoha has attracted attention from several clubs owing to his potential, and Arsenal's reported interest signals that the teenager is regarded as one of the more exciting young prospects in English football.

Liverpool will be eager to tie down the youngster and avoid losing him to a direct rival, making the coming weeks significant for both clubs as the situation develops.