Brendan Rodgers has confirmed that Liverpool have pulled out of a deal to sign Loic Remy but refused to clarify why.
Liverpool have completed the £20million signing of Croatia centre-back Dejan Lovren from Southampton.
Arsene Wenger has warned his Arsenal team how they perform over the Barclays Premier League run-in will decide his summer transfer plans.
The Gunners host relegation-battlers Reading aiming to stay within striking distance of the Champions League places, having closed up to just four points behind rivals Tottenham and with a match in hand.
Wenger is set to have a bumper war chest with which to improve the squad when the transfer window re-opens - and the Arsenal boss wants his players to show him there is no need to bring in reinforcements for their position by finishing what has been a testing campaign in style.
"We have to analyse. What will decide our attitude, my attitude, is how we do now until the end of the season," said Wenger, who must do without both England internationals Jack Wilshere and Theo Walcott, while France midfielder Abou Diaby is set for up to nine months on the sidelines with knee ligament damage.
"We have had some blips that were not expected, Blackburn and Bradford (in the cup competitions), but overall I must say the attitude of the team has been great and when everyone is here (fit), then we have a strong team.
"What is important is to analyse where we can improve at the end of the season."
Despite his warnings that each man is effectively playing for his place - with even captain Thomas Vermaelen and goalkeeper Wojciech Szczesny no longer guaranteed a start - Wenger feels the current squad do deserve a great deal of credit for the way they have hauled themselves back into contention with a run of five wins in the last seven league games.
"They have gone through difficult times and have responded well," he said,
"They have shown mental strength as we lost against Blackburn (at home in the FA Cup), Bayern (in the Champions League at home) and then Tottenham, so as well they could be scared that the group implodes.
"We have shown a strong response against Bayern (in the Champions League away) and also Swansea, so that shows that this group is mentally strong."