Tottenham have pulled out of the race for Loic Remy with Liverpool now the favourites to sign the wantaway QPR striker, Goal understands.
Goal revealed last month that Remy had held talks with Spurs over a potential £9 million deal, but the France international is keen to move to a club playing in the Champions League.
|13/5||Tottenham are 13/5 with Paddy Power to finish in the top four this season|
The Gunners are now targeting a holding midfielder and, after talks with Sami Khedira reached an impasse over the player's wage demands, have set their sights on Southampton's Morgan Schneiderlin.
All of this leaves the way clear for Liverpool. Goal exclusively revealed last week that Brendan Rodgers was considering a bid for the QPR striker and Swansea City talisman Wilfried Bony as he looks to bolster his attacking options in the wake of Luis Suarez's £70m departure to Barcelona.
Remy scored 14 goals in 26 Premier League appearances during a productive loan spell at Newcastle last season and has a £9m release clause in his QPR contract.
Tottenham are the only Premier League club yet to make a senior signing this summer, and also appear set to miss out on Swansea City full-back Ben Davies to Liverpool after a lengthy pursuit.
Spurs sources have also categorically denied that the club are interested in signing 33-year-old free agent Samuel Eto'o, who was released by Chelsea this summer.
Liverpool boss Rodgers has already brought Southampton duo Adam Lallana and Rickie Lambert, Benfica winger Lazar Markovic and Bayer Leverkusen midfielder Emre Can to Anfield for a combined outlay of over £50m.