Liverpool have rejected Arsenal's improved offer of just over £40m for Uruguayan striker Luis Suarez.
The unusual bid, understood to be £40,000,001, was designed to trigger a clause in Suarez's contract, but Liverpool have turned it down.
Suarez has a clause in his deal that means the club are duty bound to consider any bid in excess of £40m and then inform the 26-year-old of it.
But they do not have to sell and have now rejected two bids from Arsenal.
While Liverpool remain determined to hang on to their prized asset, their resolve is likely to be tested should the bidding continue to rise.
Manager Brendan Rodgers last week said he considered Suarez to be at least as valuable as Edinson Cavani, who recently joined Paris St-Germain for £55m.
Real Madrid remain interested but have yet to make a formal offer.