Liverpool winger Xerdan Shaqiri was left out of the Carabao Cup fourth round squad for the Arsenal game further heigthening the transfer rumours surrounding him.
The Swiss international was conspicuously missing from the 18-man squad that played Arsenal at home on Wednesday night.
Without Shaqiri, Liverpool were dumped out of the Carabao Cup by Arsenal via penalties after the two teams played out a goalless draw.
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Arsenal beat hosts Liverpool 5-4 on penalties after the two teams had finished their game without a goal at the end of 90 minutes. The Gunners have progressed to the quarterfinals of the Carabao Cup as a result and they will host Manchester City at the Emirates Stadium for a place in the last four of the competition.
Manchester City are the defending champions having won the competition for the last three seasons.
According to the Liverpool Echo, Xerdan Shaqiri is in talks with two clubs as the Swiss player edges towards the exit door.
Xerdan Shaqiri has spent two seasons at Liverpool following his £13m transfer from Stoke City.
Liverpool activated his release clause with the Potters to sign the former Bayern Munich winger.
He has won both the Champions League and the Premier League titles at Liverpool in the past two seasons.