Arsenal and Liverpool have both been placed on red alert after Sam Allardyce admitted that West Ham United defender Winston Reid is unlikely to sign a new deal with the Hammers, as reported by The Guardian.

“I would say it’s highly unlikely that Winston is going to sign for us based on what people have said to me,” said Allardyce.

Reid’s contract expires at the end of the season, and this latest news means that the east London club are likely to accept a move for him in January that meets their valuation.

Should they not, they risk losing him for free.

The New Zealand international central defender has played an integral role for West Ham as they have emerged as one of the Premier League’s surprise packages in the first half of the season.

Allardyce’s side could challenge for the Champions League places as we head into the business half of the campaign.

West Ham may have even prepared for Reid’s departure, having signed Canadian defender Doneil Henry for £1.67 million from Apol Limassol.

West Ham United manager Sam Allardyce has slapped a huge £20 million price tag on defender Winston Reid.

This will come as a blow to both Liverpool and Arsenal, who have been tracking the New Zealand international ahead of the January transfer window.

Reid’s contract with West Ham expires at the end of the season, and as a result, there had been hopes that he would be available on a cut price deal in the winter transfer window, with a belief that the Hammers would not be willing to lose him for free.

That has not, however, turned out to be the case.

Allardyce is not willing to see him depart for anything less than his true value.

“He isn’t going anywhere,” the West Ham boss said. “Unless someone bids £20million or something like that.”

With the east London side flying high in the Premier League, the 26 year old defensive brute could be tempted into staying at the end of the campaign, but that represents a significant risk for Allardyce.

Allardyce added: “If somebody flirts around with a measly offer because he is in the last year of his contract, we would make more money by keeping him and finishing where we are in the league than selling him and putting our good season in jeopardy.”

Clubs may now be tempted into waiting until the end of the campaign to capture the centre back, who has made 105 appearances for West Ham in four years.