Sky Sports News senior reporter Melissa Reddy provides an update on Trent Alexander-Arnold's future and answers all the key questions.
The saga took a new twist on New Year's Eve when Liverpool rejected an approach from Real Madrid's Alexander-Arnold.
There was no formal offer, but an approach was made from the Spanish side.
Alexander-Arnold is out of contract at the end of the season and according to reports in Spain, the 26-year-old has told Liverpool he wants to play for Madrid.
Reddy, who interviewed Alexander-Arnold in December, explains what this latest development means…
What does this latest development tell us about where both clubs and players stand ahead of the summer?
Melissa says: For Real Madrid, it shows us unequivocally that Alexander-Arnold is their main target for the summer, so much so that they don't want to wait until then and are willing to pay more than £20 million to get the right-back up front its free agency.
They wouldn't have approached Liverpool to get him in this window if there wasn't encouragement from the players' side. But it is important to underline that this does not mean Alexander-Arnold wants to leave Liverpool this month. He is in the middle of a negotiation and it pleases him that Real shows his hand, makes Liverpool fight for him, and that his boyhood club knows Real's intentions and makes him an offer worth considering.
He is in an incredibly strong position when it comes to negotiations.
Liverpool would never tolerate Alexander-Arnold's departure this month given their league and Champions League ambitions. They haven't conceded defeat by keeping him and signing him to a new contract – and they won't until he signals his intention to leave for Madrid. So far that has not been said.
Alexander-Arnold can now hold formal talks with Real Madrid. Does that change anything?
Melissa says: Not much changes in the sense that in modern transfers informal conversations take place all the time and each party already knows what the parameters are to get a deal over the line. What it does affect is how loud, open and forceful Real can now be about their pursuit of Trent, which will not be pleasant for Liverpool and their supporters. Be prepared for overdrive – especially from the newspapers in Madrid.
Is there any danger that this situation with Trent could destabilize Liverpool's title claim?
Melissa says: Contract situations – especially Real's continuing their aggressive, charm-offensive ways – are the uneasy cloud hanging over imperious Liverpool, but I don't think this will faze them due to the professionalism of the players and their relationship with Arne Slot, which is very strong. I interviewed Trent two weeks ago and he mentioned how much he enjoys the level of detail Slot provides and the adjustments made to his game.
The ambition to win silverware this season will take priority for all of them.
We have seen Real Madrid take a step. Can you see other clubs making moves this month for Liverpool's other out-of-contract players, Virgil van Dijk and Mohamed Salah?
Melissa says: We're talking about the best player in the world as it stands in Mohamed Salah and the best centre-back in Virgil van Dijk, so it would be a surprise if no elite side tried to tempt them.
But I think they've both made it so clear that they want to stay at Anfield, and the market is limited so that the clubs that can normally afford that and allow them to compete at the highest level, in the current situation do not have the financial strength. climate to sell them an alternative to Liverpool.
Both players are in the starting lineup of every top team, regardless of who is in their position – it is not about their talent, but only about the state of market forces.
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