Liverpool are monitoring David Alaba's future at Bayern Munich but Real Madrid remain the favourites for his signature, reports The Guardian.
Alaba has entered the final six months of his current Bayern deal and the Bundesliga outfit are resigned to losing the versatile defender for nothing at the end of the season.
Bayern have withdrawn their contract offer for Alaba after months of talks and now the 28-year-old is free to discuss a Bosman transfer with foreign clubs.
Liverpool desperately need to bolster their defensive options with Joel Matip, Joe Gomez and Virigil van Dijk sidelined and are interested in Alaba, though a deal this month is unlikely.
However, Alaba's preference is to join Madrid and the Spanish giants have already reached out and started initial talks with his camp.
With Sergio Ramos also out of contract this summer and no extension currently close, Madrid are keeping their options open and Alaba is a target.
Alaba has spent the last 12 years with Bayern and can operate at left-back, centre-back, left wing and in central midfield.
