Liverpool are facing competition from Spanish giants Real Madrid as they both bid to lure Xabi Alonso back to the club, according to the Telegraph.
The Spaniard is nearing the end of his deal with Bayern Munich and has so far not entered negotiations to extend his stay in Bavaria.
He joined the Bundesliga giants in 2014 after five years in the Spanish capital, where he was part of the famous side that lifted the tenth European Cup for Los Blancos, though he did not play in the final.
Previously, he had been a firm favourite at Anfield during his stay on Merseyside from 2004 and 2009, winning the Champions League and FA Cup during his time as a Red.
Alongside Steven Gerrard and Javier Mascherano, the former Real Sociedad man formed arguably the last great Liverpool team in memory.
Now, both clubs are thought to be bidding to land the 34-year old World Cup winning classy midfielder on a free transfer this summer.