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Arne Slot admitted that Martin Zubimendi would have been a "good fit" for Liverpool but said that the Reds found a lot of Zubimendi's qualities in Ryan Gravenberch.
Zubimendi was Liverpool's principal midfield target 12 months ago but the Spain international ended up turning down a move to Anfield to spend one more season at Real Sociedad.
Sociedad had already seen two key players leave last summer in Robin Le Normand and Mikel Merino, and Zubimendi did not want to be part of a mass exodus at his boyhood club.
The Basque midfielder ultimately agreed to join Arsenal midway through last season, and completed his move to the Emirates Stadium earlier this summer.
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The 26-year-old will come up against the team he rejected when the Gunners travel to Anfield on Sunday, and Slot was asked about Liverpool's interest in Zubimendi ahead of the game.
"What we liked about (Zubimendi) was how good he is on the ball and how much game insight he has," Slot said.
"We thought — and it was true — that we would have the ball a lot in every single game, and then to have someone in front of your defence that is very comfortable on the ball would have been a good fit for us.
"Especially if he's also defensively strong enough for the league, which he's showing now and which we also expected
But we found all of these things definitely also in Ryan, he's very comfortable on the ball and defensively strong enough to play in the position."
Ryan Gravenberch has excelled in the role that was Martin Zubimendi was earmarked for
“They were uncomfortable moments for me, because, as is normal, people talk a lot,” Zubimendi said of Liverpool’s interest in him.
“But, anyway, you think about the pros and cons, thinking about it carefully, and you come to the conclusion that, well, for me the best thing was to stay at Real.
“Each one also looks at their personal progress a little
Because of who I am, the project, and the importance that I was going to have this year, I think that I still had steps to take at Real.
“Yes, there are many variables that come into the equation, but the main one was, selfishly thinking, what was best for me.
“It is true that then there are those thoughts, but I tell you that I tried to be, although it may seem untrue, as selfish as possible, thinking about myself first and foremost, the best thing was to stay.”