Arsenal failed with a late effort to beat Liverpool to Fabinho, according to Sky Sports News HQ.
Liverpool announced the arrival of the midfielder from Ligue 1 heavyweights Monaco on Monday evening, with Fabinho agreeing a five-year contract with Jurgen Klopp's side.
The Champions League runners-up are paying Monaco a fee of €50m plus bonuses to take Fabinho to Anfield.
Atletico Madrid were interested in Fabinho, but Liverpool saw off the Spaniards – and it has now emerged Arsenal tried to beat Liverpool to Fabinho.
But Unai Emery's side could not beat Liverpool to the Brazilian and will have to turn their attention to other midfield targets.
relatedNewsStory
The Gunners only have Europa League football on the agenda next season after they again finished outside the top four in the recently concluded campaign.
Arsenal's failed move for Fabinho shows that the side are looking for a defensive midfielder in the summer transfer window as they aim to break back into the top four.
