Liverpool and Arsenal target Leon Goretzka ‘to join Bayern Munich in the summer’ when Schalke contract runs out

LIVERPOOL and Arsenal have been dealt a major blow with the reports suggesting Leon Goretzka will join Bayern Munich on a free transfer.

The Premier League duo had both been keen on the midfielder and were hopeful of tempting him to sign at the end of the season when his contract at Schalke runs out.

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However, report Bayern will be Goretzka's next destination.

The Schalke man came to the fore with some excellent performance's during Germany's march to Confederations Cup glory in the summer.

And Arsenal were among the first to interested in signing him, when it became apparent his contract was due to run out at the end of the season.

However, as he continued to shine with some impressive performances in the Bundesliga, Liverpool — as well as Manchester United and Barcelona — started to take note.

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The imminent departure of Philippe Coutinho saw the Reds installed as favourites for his signature as Goretzka, 22, would work as a direct replacement.

However, as with most talent young, Germany players, he will join Bayern on June 30.

Schalke have been the surprise package in the Bundesliga this season, sitting in second place.

And Goretzka, who has been compared to Germany legend Michael Ballack in terms of his playing style, has been key to their rise up the table.