Arsenal and Liverpool have been alerted by speculation that Real Madrid are ready to sell Asier Illarramendi this summer, according to reports from the Express.
The 25-year-old is believed to have been told by manager Rafa Benitez that he is likely to be limited to very little playing time should he remain at the Bernabeu.
Reds boss Brendan Rodgers earlier tried to lure him to Anfield, but Illarramendi opted to remain with the La Liga giants in hopes of earning a regular place in the squad.
He has already represented Spain in all youth level squads, but is yet to earn himself a place in the senior team as a regular first team football could help him achieve that.
The Gunners are also keen to add another defensive midfielder into his ranks as manager Arsene Wenger has long been in the market for a player capable of the role.
The former Real Sociedad star joined the club for about £22.5million back in the summer of 2013, registering a total of 59 appearances over the past two campaigns.