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Has he actually left? Liverpool certainly haven't said as much.
I wouldn't be surprised if the Arsenal board did something daft like appointing him, mainly because he's cheap, but his lack of experience as a number one would make it hard for the fans to accept him, and I fear the same would be true for the players. It would be much better to make a short term appointment of a big name, like Allegri or Ancellotti.
We'll probably end up with Sven-Goran Eriksson.
Buvac left Liverpool this week, and is now shortest odds at Betfair. Add that he worked with Mislintat at Dortmund, who seems to have a lot of power these days. Could mean nothing though.