The Spanish ace looks set to leave the Nou Camp next month after growing frustrated at a lack of first-team opportunities.
The arrival of Luis Suarez over the summer and the emergence of Munir El Haddadi has seen the 27-year-old limited to just seven La Liga starts, in which he’s netted two goals.
A dispute with new boss Luis Enrique is rumoured to have pushed him to force an exit, which has alerted both Liverpool and Arsenal.
But, the Gunners are desperate to win the race, and are hopeful that a £26m offer will blow their rivals out of the water.
Liverpool are believed to be looking at an orthodox striker and fresh defensive options, which Arsene Wenger is keen to use to his advantage to snap up the classy attacker.
Pedro may find it easier to settle at the Emirates Stadium, with Alexis Sanchez a former team-mate of his at Barca.