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 has emerged as a top target for Real Madrid, who are expected to launch a huge move for the dynamic right-back next summer.
Such a move would provide the 26-year-old with a new challenge in Spain as well as the opportunity to link up with his close friend and England team-mate Jude Bellingham.
Liverpool, who are also facing the prospect of losing Mohamed Salah and Virgil van Dijk on free transfers this summer, are said to be keen to renew Alexander-Arnold’s contract.
However, according to the Spanish publication SPORT, the right-back has already rejected a number of contract offers and will leave on a free in the summer.
Real remain the frontrunners for his signature but several other top European clubs have been credited with an interest, including Bayern Munich, Barcelona and Paris Saint-Germain.
The report suggests that Liverpool would be reticent to cash in on Alexander-Arnold in January unless a major bid is lodged and will hope the full-back has a change of heart in the second half of the season.
While Alexander-Arnold has been coy about his long-term future at Liverpool, he has spoken in glowing terms about what the club means to him having been part of the academy since he was six.
‘It’s the same as what I’ve felt when I was six, when I first pulled the shirt on. It means everything,’ he told beIN SPORTS earlier in the week.
‘It’s a privilege, it’s an honour. I know how many people wish they were in my position and I don’t take that for granted.
‘It’s something that I worked really, really hard for, so it’s something that I embrace and I love it. It’s something that I enjoy doing, every single time.
‘It’s been over 300 times now that I’ve done it, first-team football, most of those times have ended in good results, some haven’t, but through the good and the bad I’ve loved putting the shirt on.’
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