Alexander-Arnold has emerged as a top target for Real Madrid, who are expected to launch a huge move for the dynamic right-back next summer.
The boyhood Liverpool fan has entered the final 12 months of his contract at Anfield, meaning he is free to talk to other clubs from January onwards.
Alexander-Arnold is said to be intrigued at the possibility of joining Real Madrid – the most successful team in Spain and the current Champions League holders – and is keen to link up with his close friend and England team-mate Jude Bellingham.
Liverpool have not given up hope of convincing the 26-year-old to extend his stay on Merseyside but Sherwood believes they have ‘no chance’ as Real Madrid wait in the wings.
Alexander-Arnold is not the only high-profile Liverpool player coming to the end of his current contract, with superstar forward Mohamed Salah and current skipper Virgil van Dijk in the same boat.
Sherwood expects Salah and Van Dijk to put pen to paper on new deals with Liverpool but believes Alexander-Arnold is on his way out.
Asked whether Liverpool’s superb start to the 2024-25 campaign may help the club convince Alexander-Arnold, Salah and Van Dijk to stay, Sherwood told Sky Sports: ‘That helps.
‘We’re talking about three top-drawer players there who want to win trophies. They don’t want to sit there just to challenge for Champions League positions. They all want to win stuff so this start helps, it can only help.
‘I think with Trent, I think he’s gone. Once Real Madrid come knocking for you… he’s won everything at the football club and been a magnificent servant but there’s no chance they’re keeping him now I wouldn’t have thought.
‘With Virgil van Dijk and Mohamed Salah, I think it’s completely different because I’m not sure where they are going to go which is better than Liverpool.’
Alexander-Arnold has made more than 300 appearances for Liverpool since making his first-team debut back in 2017.
He was a key part of the Jurgen Klopp side that ended the club’s 30-year wait for a Premier League trophy and won the Champions League in 2019.
Liverpool could be set to enjoy another successful season under Klopp’s replacement Arne Slot, having won 11 of their opening 12 games in all competitions.
The Reds’ latest win came in the Champions League on Wednesday night, Liverpool beating RB Leipzig 1-0 thanks to Darwin Nunez’s first-half goal.
The big games keep on coming for Liverpool who travel to north London to face Premier League title rivals Arsenal this weekend.
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