The Reds are rumoured to be negotiating with the latter, but it’s understood that the deal is some way off amid talk of a dispute over personal demands and a possible initial trial to test out the stopper’s injured knee.
Although the proposed move is not dead just yet, the Merseysiders are considering alternatives, with Casillas an option.
The 33-year-old is thought to be free to leave Real for the right price in the new year after an alarming dip in form.
Once a regular for club and country, Casillas has been in and out of the Los Blancos XI over the course of the past couple of seasons and recently lost his starting spot for La Roja after a blunder against Slovakia.
But Liverpool are thought to be keen, as they look to provide under-fire goalie Simon Mignolet with top class competition.
Arsenal are also thought to be interested in the World Cup winner and could rival any move from the Anfield.