The England international's proposed switch to Anfield fell through in the final hours of the summer transfer window and he is set to become a free agent next summer.

Crystal Palace blocked Guehi's £35 million transfer to Anfield on the final day of the window after they were unable to sign a replacement. 

However, any hopes that the deal might be revived in January or next summer, when Guehi's contract expires, now appear to be fading.

Guehi has allegedly informed his agent of his preference for Real Madrid after a last-minute agreement to join Liverpool collapsed on deadline day. 

Reports from the Mirror suggest that Real Madrid are preparing to open negotiations for the 25-year-old defender, who has been praised for his professional conduct throughout the recent transfer speculation.

With no transfer fee required next summer, the decision rests with Guehi. Foreign clubs will be free to negotiate a pre-contract agreement with him starting in January.

Sources indicate that Guehi's top choice is a move to the Bernabeu, snubbing Liverpool despite coming incredibly close to joining them on September 1st. 

This development could deliver a double blow to Arne Slot's side, as Ibrahima Konate is also running down his contract ahead of a potential free transfer next summer, with the Spanish giants reportedly among the interested clubs.

He is said to be excited by the prospect of playing for the Spanish giants, who have also shown interest in Konate after the French defender turned down a new contract offer from Liverpool.