PGMOL chief Howard Webb has confirmed that VAR made a significant error during Liverpool's 1-1 draw against Arsenal last month.
The result of the game, which took place on December 23, meant that Arsenal were on top of the Premier League table at Christmas.
But their form has nose-dived since then, with the Gunners losing their subsequent league matches against West Ham and Fulham, and then to the Reds in the FA Cup third round.
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In the 1-1 draw between the two sides, Gabriel Magalhaes put Arsenal in front on four minutes as Mikel Arteta's side made a fast start.
Liverpool then equalised on 29 minutes through Mohamed Salah, and could have snatched victory late on when Trent Alexander-Arnold's effort smashed against the crossbar.
But there was one flashpoint before half time, with Liverpool believing they should have been awarded a penalty for a perceived handball by Arsenal captain Martin Odegaard.
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The Norwegian midfielder slipped to the ground, with the ball hitting his arm as he pulled it back in towards his body.
On the newly-released audio of the incident, VAR David Coote recognised that the ball had hit the midfielder's arm, but announced that the check was complete after seeing his arms move towards him.
Speaking on the 'Match Officials Mic'd Up' show, Webb confirmed his belief that Odegaard did, in fact, gain an advantage through that action - and that VAR made an incorrect decision in not giving a penalty.
Webb explained: "The game expects a penalty in the situation. I would agree.
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"The referee on the field recognised that Odegaard had slipped and saw his arm go towards the ground.
"This is not just Odegaard accidentally falling onto the ball. He does slip, his arm does go out, but he actually pulls his arm back in towards his body, which is when the ball makes contact with the arm.
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"The VAR looked at that aspect. He felt it was a case of Odegaard trying to make himself actually smaller by bringing the arm back towards the body. That is the element that's important here.
"Whether it's instinctive or deliberate, he gets a huge advantage by bringing the arm back towards the ball. All the feedback we got afterwards was very clear.
"This is one that didn't reach the right outcome on that basis."
Topics: Martin Odegaard, Arsenal, Liverpool, VAR, Premier League