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The France midfielder looked set to pack his bags in either January or next summer with his current contract expiring at the end of this season.
However, Italian new outlet Calciomercato say an agreement is now close.
It’s suggested Rabiot is close to accepting a hefty £7m per season to stay in the city of lights.
There is a glimmer of hope for potential suitors though.
Calciomercato add that Rabiot is still keen to test himself outside of Ligue 1.
The Reds had been linked with a swoop as Jurgen Klopp looked to snare a bargain.
Barcelona had also been confident that they could lure him to La Liga.
In Serie A, Inter Milan and Juventus were sniffing around.
Liverpool even engaged in talks with Rabiot’s representatives, according to French football journalist Julien Laurens.
Lauren’s explained: “[I] think it was quite positive.
“I don’t think it’s the first time Rabiot’s men have talked with people from the club.
“The interest from Klopp is even pre-Liverpool and Liverpool, since Klopp have always been there.”
Liverpool face Arsenal on Saturday having battered Cardiff 4-1 in their last fixture.
Speaking after the clash, Jurgen Klopp said: “It’s really important to stay on track.
“We will all meet each other, it’s unbelievable that five or six clubs have such a big number of points but it only makes it even more intense.
“It’s good for the people and the supporters of different clubs.
“Today it was clear that if we win it would be like that. We won, but for us it’s just the next step, that’s cool.
“Now we have time to recover.
“It’s the first time for a lot of the boys that they don’t play in three days’ time.
“We will use the time to recover then prepare the Arsenal game, which will be another nice challenge.”
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