The north Londoners are currently six points adrift of their Merseyside rivals having played an extra game. There is a serious risk that Liverpool could start to pull away unless Mikel Arteta takes drastic action.
Arsenal are yet to make any January signings but could reap the rewards of loosening their purse strings, with a number of top players having already been linked.
Express Sport takes a look at three high-profile deals the Gunners could still pursue...
Marcus Rashford
A surprise move for Rashford has been mooted over the last few days, with the 27-year-old eager to leave Manchester United and take up a new challenge.
It has been reported that the Red Devils would prefer to negotiate a loan deal, but a permanent sale cannot be ruled out.
A bid of around £40million would be enough to tempt the Red Devils into doing business, according to Ben Jacobs, which could be good news for Arsenal.
Having another versatile forward in the dressing room would do wonders for squad depth, with the likes of Bukayo Saka and Ethan Nwaneri out injured.
Ronald Araujo
Arsenal have also been tipped to strengthen in defence, with Barcelona centre-back Araujo among their reported targets.
An injury to Gabriel Magalhaes or William Saliba would significantly reduce their Premier League title hopes, meaning quality cover is essential.
Juventus are said to be leading the race for Araujo as things stand, but the Gunners are believed to be keeping a close eye on developments.
According to Sport, an offer in the region of £38m would suffice with Barcelona ready to sell if the price is right.
Alexander Isak
It would certainly take a huge amount of money to sign Isak this month, but his keen eye for goal could drastically improve Arsenal's chances of securing Premier League glory.
They have lacked a prolific striker for several years and the Newcastle man would be the complete package, giving the Gunners an extra edge in attack.
Newcastle are said to be demanding £150m in exchange for his signature, which is likely to put a January move out of reach.
However, he would undoubtedly be the dream signing for Arsenal and it remains to be seen if they are willing to break the bank to snap him up.
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