Arsenal had been favourites but they are refusing to sign the player on loan without a clause to make the deal permanent.
With Liverpool offering more money for the player, it seems as though they will now take the Turkish international on loan.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.