The 17-year-old flair boy was deemed one of the most exciting teenagers in world football when Los Blancos signed him from Stromsgodset in January 2015.
But the Norway international has struggled to impact at the Bernabeu, making just one senior appearance thus far, and Real are reportedly looking to loan him out for the coming campaign.
But according to The Daily Mail, the Premier League duo now face a deadline to get a deal over the line, due to Real Madrid’s impending transfer ban.
The El Clasico giants appealed against the ban when it was announced in January, which has allowed them to be active during the summer, but a final decision to implement it is expected by the end of the week.
And once the year-long ban is put in place, Zinedine Zidane’s side will not be allowed to recall players they send out on loan next summer, which would put them in an unfavourable position.
Hence, Real Madrid are working to get the deal sorted beforehand, but West Ham and Liverpool face competition from Bayer Leverkusen and Hamburg.