ARSENAL look set to miss out on Xabi Alonso after Liverpool boss Rafael Benitez said the midfielder is likely to remain at Anfield.

The 26-year-old Spanish international has been heavily linked with a move to the Gunners in recent weeks after his proposed move to Juventus fell through.

But any deal is dependent on the transfer saga surrounding England star Gareth Barry.

The Aston Villa midfielder's summer-long, on-off switch to Liverpool now appears to be off and, as a result, Benitez expects Alonso to remain on Merseyside.

In another twist to the tale, Arsene Wenger has also been chasing Barry.

Although that deal also appears to be dead in the water, the Arsenal boss - who has seen Mathieu Flamini and Gilberto depart the Emirates this summer - is still keen to add an experienced midfielder to his squad before the transfer window closes at midnight.