Report: Liverpool breath sigh of relief as Real Madrid end chase for Trent Alexander-Arnold

Arnold has been the subject of transfer speculation since the opening of the January window and has been linked with top clubs in Europe.

With just a few months left on their contracts, Alexander-Arnold is set to be a free agent at the end of the season.

Although Liverpool are actively talking with the player, they are up against competition from Madrid, who have long admired Alexander-Arnold.

According to Marca, via Daily Mail, Real Madrid has now ruled out resuming talks because they think Liverpool values their current sporting project more than recovering a fee for Alexander-Arnold.

The Champions League winners have had encouraging discussions with the England international about a move to the Spanish city and anticipate a deal being finalised this summer.

However, Liverpool instantly rejected a £20 million opening bid, and Madrid were thinking of trying again.

As of right now, Alexander-Arnold is free to sign a pre-contract with any European team in January before signing in the summer.

The fact that Liverpool would lose one of their best youth players ever and not receive a return on their long-term investment would be a double blow