Shkodran Mustafi has completed his move to Schalke 04, after the Gunners agreed to terminate his contract, which has opened the door for Liverpool to sign Ozan Kabak on loan.
The 28 year,German international has picked up just three substitute appearances in the Premier League this term, notching up just 44 minutes of action.
Kabak has supposedly agreed to join the Reds on loan with an option to buy, with Liverpool having struggled with a number of defensive injuries this term, resulting in both Jordan Henderson and Fabinho both filling in at centre-back in recent months.
Mustafi will join his former team-mate in Sead Kolasinac at Schalke 04, who joined the club on loan until the summer.
Mustafi joined Arsenal in 2016 from Spanish side Valencia and he has made 151 apperances plus scoring 9 goals for the Gunners.