Manchester United and Arsenal have been boosted in their hopes of signing Denis Zakaria as Liverpool are reportedly out of the race to sign the Borussia Monchengladbach midfielder.

Defensive midfielder Zakaria has been attracting interest from clubs across Europe with his performances for the Bundesliga table-toppers.

The 22-year-old has caught the eye with his accurate passing and powerful running.

Last month it was reported that Arsenal and Liverpool officials had held initial meetings with Zakaria’s representatives .

Manchester United have also reportedly been in talks with the star's entourage, while Tottenham have been following his progress.

Zakaria could be on his way out of Monchengladbach with clubs across Europe keen on him

Zakaria could replace his fellow Swiss international Granit Xhaka at Arsenal , with the midfielder looking set to leave the club after his relationship with fans deteriorated.

Scott McTominay has been one of United's best performers this season at the base of midfield, although he is currently sidelined with an ankle injury, and Nemanja Matic is expected to leave the club.

But Liverpool won't be swooping for Zakaria, as manager Jurgen Klopp is happy with his midfield options including Fabinho, Jordan Henderson, Naby Keita and James Milner.

That's according to The Athletic's Liverpool reporter James Pearce, who also dismissed speculation of a move for Bournemouth winger Ryan Fraser.

He tweeted: "Been told that the speculation about #LFC and Ryan Fraser is wide of the mark. Claims that they are in talks over a January move dismissed as 'nonsense'. Liverpool have also recently been linked with Denis Zakaria from Gladbach but Klopp happy with his midfield options."

Bundesliga rivals Bayern Munich and Borussia Dortmund are keen on Zakaria, with their interest already lodged with Zakaria’s agents.

La Liga giants Atletico Madrid and Serie A big boys Inter Milan have also been keeping tabs on his performances.

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Germany legend Lothar Matthaus previously compared Zakaria to Real Madrid star Toni Kroos.

“I’m glad that Gladbach have found another pearl,” he said. “At his age I was earning my first stripes for Borussia. He reminds me of Toni Kroos at that age.”

Zakaria is contracted to Monchengladbach until 2022 and is valued at around £25million, according to Transfermarkt .