Liverpool are prepared to let Alex Oxlade-Chamberlain rejoin Arsenal, but will reportedly demand a large chunk of his £35m fee back, the Sun reports.

Arsenal are keen to resign out-of-favour Liverpool midfielder Oxlade-Chamberlain, who has slipped down the pecking order at Anfield.

The 28-year-old spent seven years at the Emirates before joining Liverpool for £35m in August 2017 and former teammate Mikel Arteta is keen on a reunion.

With the emergence of young midfield stars such as Curtis Jones and Harvey Elliott, Liverpool are prepared to cash in on The Ox, but want to recoup as much of the £35 as possible.

The 35-cap England international was a vital part of Liverpool’s title winning squad of 2019-20, making 30 appearances in the league.

But he has since struggled for minutes after a knee injury ruled him out of the first four months of last season, starting only four times Liverpool since.

Frustrated with his lack of game time, the Oxlade-Chamberlain believes he is ready for a new challenge and already has a good relationship with Arteta.

The two played together at Arsenal for five years under Arsene Wenger, winning the FA Cup in both 2014 and 2015.