Arsenal reportedly made a failed attempt to hijack Fabinho's move to Liverpool at the 11th hour.
Fabinho put pen to paper on a long-term contract with the Champions League finalists this evening, joining Jurgen Klopp's side from Monaco in a deal which could rise to around £43.7m.
However, Sky Sports News reports that Arsenal attempted to convince the 24-year-old to move to the Emirates Stadium instead of Anfield, only for Fabinho to choose Merseyside.
New Arsenal manager Unai Emery is understood to be working with head of recruitment Sven Mislintat to overhaul the squad following the departure of Arsene Wenger after 22 years at the helm.
The Gunners finished sixth in the Premier League during the 2017-18 campaign - their lowest ever finish under Wenger - and will play Europa League football again next season.
Liverpool's qualification for the Champions League is understood to have been a factor in him choosing the Reds, where he becomes Klopp's first signing of the summer.
Fabinho's arrival is also expected to pave the way for Emre Can to leave the club when his contract expires this summer.
