Transfer news: Liverpool and Newcastle watch on as Barcelona send warning to Ousmane Dembele

Liverpool and Newcastle are on red alert as Barcelona consider throwing down an ultimatum to Ousmane Dembele, according to reports.

The France international is out of contract next summer and discussions over a new deal have stalled.

The winger will be free to negotiate with non-La Liga sides as early as January 1, and he could even sign a pre-contract agreement ahead of a summer switch.

Barcelona are keen to keep Dembele at the Camp Nou and have offered him a new contract until 2025.

They are yet to receive a positive reply from the former Borussia Dortmund man, though.

And Marca reports that Barcelona are now considering taking a hardline approach to Dembele's situation.

If the 24-year-old turns down their contract offer, the Blaugrana are prepared to freeze him out of first-team affairs.

That was the treatment meted out to Ilaix Moriba in the summer, before the teenager joined RB Leipzig.

Dembele has yet to play in La Liga this season due to injury, but he has now returned to full training.

Despite that the Frenchman has been left out of Barcelona's travelling party for the trip to Rayo Vallecano on Wednesday.

That is an indication that the club is willing to stand firm as they seek a response to their offer of an extension.

Dembele has been linked with Liverpool and Newcastle in recent weeks, and both Premier League clubs will be keeping a close eye on developments at the Camp Nou. 

"The most important thing is that we want him to stay," Barrcelona's under-fire manager Ronald Koeman said of Dembele on Tuesday.

"He is key and has quality. The goal is for him to renew. Another thing is if he doesn't want to renew. We have to talk as a club about the best way to deal with it.

"We haven't yet talked about what our strategy will be if he doesn't renew."

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