Real Madrid have had their first approach rejected by Liverpool for Trent Alexander-Arnold. Despite their intention to recruit him in the summer, they have not completely given up on bringing him this season.
Los Blancos feel they have the advantage in terms of a negotiating position, I believe Alexander-Arnold he will sign a pre-contract with them if he does not join in January. As such, they are not willing to spend big on Alexander-Arnold in January. However The Times report that Real Madrid are planning to return for him to bolster their depleted ranks this season.
Liverpool So far, they have made their position clear, even with Real Madrid willing to reach 20-25 million euros to complete the deal. They still hope they can convince Alexander-Arnold to sign a contract renewal. The same source explains that there were no discussions with Liverpool when Real Madrid opened talks, but Carlo Ancelotti is pushing for the deal, with Lucas Vazquez his only natural alternative at right-back due to an injury to Dani Carvajal at the end of the season.
It seems unlikely that Los Blancos will succeed in their attempt in the winter transfer window, and even it has been suggested by the icon of Liverpool Jamie Carragher that it is a game of Real Madrid to help Alexander-Arnold leave in conditions better, with the club rejecting the offers. Certainly Real Madrid's approach is one that speaks from a position of confidence though, suggesting that they have certain assurances.