Liverpool and Tottenham have both been linked with the classy Croatian centre-back, who looks likely to become another first-team star to leave the Saints this summer amid talk that he has requested a transfer.
The Reds were thought to be front-runners due to their Champions League advantage over Spurs, but now Arsenal are also involved.
Lovren only joined the Hampshire outfit in an £8.5m deal from Lyon last summer, but offers of close to £15m are expected to be reluctantly accepted.
Arsene Wenger is set to lose captain Thomas Vermaelen before the new season starts, and although he has, arguably, one of the best defensive pairings in the Premier League in the shape of Laurent Koscielny and Per Mertesacker, the Frenchman is desperate to bolster his ranks.
Lovren himself may be tempted by life in London, however the presence of Rickie Lambert and Adam Lallana – who is due to complete his long-awaited switch to Anfield – on Merseyside may sway his decision.
Spurs remain in the running with thanks to manager Mauricio Pochettino’s relationship with the enforcer.