According to David Woods in the Daily Star, a bidding war could be in the offing for the 22-year-old star—rated at £42 million—as Liverpool manager Jurgen Klopp has now joined Gunners boss Arsene Wenger in pursuing the Mexican.
Woods added Arsenal are interested in Lozano as the potential of Alexis Sanchez's departure still looms large with his contract expiring in the summer, while Liverpool still have concerns about losing Philippe Coutinho to Barcelona.
Mexico international Lozano only joined Dutch giants PSV in June from Pachuca.
He signed a six-year contract at Philips Stadion but has caught the eye of Wenger and Klopp after an excellent first half of the 2017-18 campaign.
PSV are top of the Eredivisie after 18 games and Lozano is the league's joint top scorer having netted 11 times in 16 matches—he has also provided four assists.
It is easy to see why he has caught the eye of Arsenal and Liverpool, especially given the personnel they could be set to lose.
Lozano is most comfortable playing on the left flank but is more than capable on the right wing or as a No. 9.
He boasts electric pace and excellent finishing, and has huge room for improvement given that he is still very young.
There is no guarantee that Lozano would be as effective in the Premier League as he currently is in the Eredivisie.
A number of forwards in the past have swapped the Dutch league for the English top flight in the past and flourished, including Ruud van Nistelrooy, Luis Suarez and Robin van Persie.
But recently Memphis Depay and Vincent Janssen have both failed to make any real impact in the Premier League after earning moves to England through prolific campaigns in the Netherlands. v