The striker desperately wants to leave Liverpool this summer and move to a club that is playing in the Champions League.
Luis Suarez has threatened to hand in a transfer request at Liverpool and will take the club to court if the dispute involving a clause in his contract is not resolved, BBC Sport reports.
The striker believes that Arsenal’s recent bid of £40 million plus £1 triggered a release clause in his contract that would enable him to move to the Gunners.
However, Liverpool rejected the bid, claiming that they only had to inform Suarez of the bid and didn’t have to accept it.
Suarez disputes this and claims that he asked Liverpool to put a release clause in his new contract which would enable him to leave if the club didn’t qualify for the Champions League and a bid of over £40 million was received.
Liverpool refused this but did suggest an arrangement that obliged them to act in good faith if a bid did come in for the striker.
Suarez claims he only signed the contract in 2012 because he believed that the verbal agreement would work in the same way that a release clause does and now sources close to the player suggest that he is considering taking his case to the Court of Arbitration for Sport.