Liverpool and Arsenal are “exploring” the possibility of signing Paris Saint-Germain’s Kylian Mbappe on a free transfer, but they are not the favourites to sign the forward, according to the Daily Record.

The tabloid claims that Real Madrid still have a major “advantage” in the race to secure the France international’s services next summer.

Mbappe is a boyhood fan of the 14-time Champions League winners, while they are also in the best financial position to match the salary that PSG currently pay the player.

The 24-year-old is said to be earning a staggering €72m (£62.1m) a year, in addition to substantial bonuses, which would make it difficult for most teams to satisfy his wage demands.

Liverpool do have one card up their sleeve

The Daily Record report that manager Jurgen Klopp does have a very strong personal relationship with Mbappe, which could help the Reds overcome any difficulties in negotiations.

However, it doesn’t really help with the huge financial burden that would come with signing the PSG star.

The Merseyside club’s highest earner is currently Mo Salah on £350,000 a week but Mbappe still gets paid nearly 3.5 times more than the Egyptian international. It’s hard to see how Liverpool could afford such a high salary.

Merchandising and shirt sales also have to be taken into account

Due to Mbappe’s status as one of the most high-profile footballers in the world, a lot of revenue would be brought in following his arrival at Anfield through merchandise and replica shirts.

It would, though, be down to the accountants to see whether the money that Liverpool could earn would outweigh the massive costs that would be accrued by agreeing to pay Mbappe’s wages, bonuses, agents and signing-on fees.

Does Klopp know his best Liverpool XI? Watch our pundits discuss the issue on Shots!TV here