Madrid have long been linked as his eventual destination but an attempt to pre-empt that process has fallen flat, with Liverpool rejecting the move.
Madrid’s approach for Alexander-Arnold was rebuffed before any financial package for buying out the remainder of his contract could be offered.
Liverpool’s executives continue to be in negotiation with Alexander-Arnold’s advisers and family, with little indication, public or otherwise, that he would like to leave his boyhood club.
The Alexander-Arnold situation continues to be without a long-term solution, while the club are also still to reach agreements to extend the contracts of Mohamed Salah and Virgil van Dijk. If Liverpool’s desire is to keep all three, then finances, profitability and sustainability regulations and wage structure may be issues.
Last summer, Liverpool made only one senior addition to the squad Arne Slot inherited from Jürgen Klopp; the Italian Federico Chiesa, who has struggled with injuries. Selling Alexander-Arnold in January would release funds as it represents “pure profit” for a former youth-team player but that avenue has been rejected.
Madrid’s intention is for the England international to be an immediate replacement for veteran right-back Dani Carvajal, 32, who is set to miss the rest of the season with a cruciate knee ligament injury.