Both Liverpool and Arsenal were in the market for midfielders later in the summer window. Injuries to both sides saw Jurgen Klopp and Mikel Arteta head into the market in search of a resolution.
Liverpool were able to bring in Arthur Melo on loan, a player Arsenal looked at signing midway through last season. Arsenal were unable to get a deal over the line for Luiz, with Villa rejecting three offers.
And Italian outlet CalcioMercato says Liverpool could steal a march over their Premier League rivals. Luiz is labelled Liverpool's top target heading into the January window.
Roma, AC Milan and Juventus are also all keen on the 24-year-old. But Liverpool have an 'ace up their sleeve' in Oxlade-Chamberlain.
Villa boss and Reds legend Steven Gerrard is said to be a big fan of Oxlade-Chamberlain. He could be included as part of the deal that sees Luiz head to Anfield.
Luiz is valued at around £34.2m by transfermarkt, despite being in the final year of his contract at Villa Park. However, sending Oxlade-Chamberlain in the opposite direction would lower the asking price.
The 29-year-old is yet to play a single minute for Liverpool this season. He suffered a serious hamstring injury in pre-season which has ruled him out of all action so far.
Oxlade-Chamberlain is also in the final year of his contract. Transfermarkt value the ex-Arsenal star at just over £14m. He has struggled with injuries throughout much of the last two seasons, making just 30 league appearances in that time.
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