The Greek defender was heavily linked with a move to Anfield in the summer, with some reports suggesting a deal had been agreed subject to the player passing a medical.
However the Reds opted to bring in other defensive targets, with it thought Brendan Rodgers was unwilling to take a chance on a player who had only recently recovered from a serious knee injury.
The Reds brought in centre backs Mamadou Sakho and Tiago Ilori on deadline day, leaving a clear route for Arsenal to try and tempt Papadopoulos to North London in January, according to reports in Italy.
Reports last month suggested Schalke were willing to let the young centre back leave if the right offer came in, news that alerted a host of clubs across Europe, including Inter Milan, AC Milan, Zenit St Petersburg, and Premier League duo Manchester City and Chelsea.
It now looks as though Arsenal are the front runners for the defender’s signature, with Arsene Wenger happy to pay around £11million for his services.
Liverpool appear unlikely to re-enter the race, as Rodgers already has Martin Skrtel, Daniel Agger, Kolo Toure, and new signings Sakho and Ilori at his disposal.
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