According to The Daily Mail, the Reds sent scouts to watch the midfielder, currently on loan at Empoli, in action against Genoa last week.
They claim the club will now step up their pursuit by holding preliminary negotiations over the coming days.
He would be Jurgen Klopp’s third signing following his deals for Joel Matip and Marko Grujic.
When asked about the speculation over his future, Wenger replied: "It is becoming a farce.
"We have lost a game. Arsenal has lost games before in history and we will lose again in the future. We will stick together and cope with it and prepare for the next one with complete belief.
"Supporters stand behind the club and we want to fight until the end of the season for every single game."
According to French outlet L'Equipe, the Uruguayan striker wants to leave Paris St-Germain at the end of the season.
They claim the 29-year-old is desperate to become the main man at a new club after slipping down PSG’s pecking order.
L'Equipe say United are ready and waiting to offer him such an opportunity and will make him an offer when the transfer window reopens.
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