Liverpool and Real Madrid are just £2.5million apart as they go into the final stretch of negotiations over Xabi Alonso's move to the Bernabeu.
Talks will take place over the weekend with Monday set as the deadline for a deal to be struck.
Liverpool have dropped their price considerably since the start of the summer and are reluctant to go much under £30m.
Following Alonso's decision to hand in a written transfer request, a compromise figure around £28m could be reached, but Liverpool will point to interest from Italy and other English clubs.
Chelsea and Manchester City both enquired about the Spain midfielder in May, but were told he is not for sale. Stamford Bridge boss Carlo Ancelotti remains keen if the price is right, but is also in talks to sign Andrea Pirlo from AC Milan.
Juventus were very interested in the 27-year-old last year, but have since signed Brazil attacking midfielder Diego, so it is unclear whether they are the unnamed Italian club said to be ready to make a renewed bid.
Alonso's heart is set on Madrid and the Spanish giants are keen to offer players to try to break the impasse in negotiations.
Madrid have struggled to offload players and are prepared to offer Liverpool one of Alvaro Negredo, Rafael van der Vaart or Klaas-Jan Huntelaar, according to reports in Spain.
Anfield boss Rafa Benitez is thought to have some interest in 23-year-old Negredo, but with Madrid valuing the striker at about £15m, Liverpool would prefer to take the cash.
Alonso is said to be dreaming of making his debut in his hometown of San Sebastian, where Real Madrid are the visitors for Real Sociedad's centenary match on August 15. The player started his career at the Basque club.
New galactico Karim Benzema has welcomed negotiations to sign Alonso, describing him as a 'superplayer' who he hopes to team up with.
Talks will take place over the weekend with Monday set as the deadline for a deal to be struck.
Liverpool have dropped their price considerably since the start of the summer and are reluctant to go much under £30m.
Following Alonso's decision to hand in a written transfer request, a compromise figure around £28m could be reached, but Liverpool will point to interest from Italy and other English clubs.
Chelsea and Manchester City both enquired about the Spain midfielder in May, but were told he is not for sale. Stamford Bridge boss Carlo Ancelotti remains keen if the price is right, but is also in talks to sign Andrea Pirlo from AC Milan.
Juventus were very interested in the 27-year-old last year, but have since signed Brazil attacking midfielder Diego, so it is unclear whether they are the unnamed Italian club said to be ready to make a renewed bid.
Alonso's heart is set on Madrid and the Spanish giants are keen to offer players to try to break the impasse in negotiations.
Madrid have struggled to offload players and are prepared to offer Liverpool one of Alvaro Negredo, Rafael van der Vaart or Klaas-Jan Huntelaar, according to reports in Spain.
Anfield boss Rafa Benitez is thought to have some interest in 23-year-old Negredo, but with Madrid valuing the striker at about £15m, Liverpool would prefer to take the cash.
Alonso is said to be dreaming of making his debut in his hometown of San Sebastian, where Real Madrid are the visitors for Real Sociedad's centenary match on August 15. The player started his career at the Basque club.
New galactico Karim Benzema has welcomed negotiations to sign Alonso, describing him as a 'superplayer' who he hopes to team up with.
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