Real Madrid have tabled a fresh bid of €35 million for Xabi Alonso which Liverpool reportedly have accepted.

According to Sport, Los Blancos have made the offer on Wednesday, which sees both clubs ‘meet in the middle'.

Previous reports had Real stating that they would offer no more than €27 million for the midfielder, while the Merseysiders were not budging on their €38 million asking price.

With Alonso set to be the latest Galactico unveiled by Real, sporting director Miguel Pardeza was quick to defend their latest splurge.

Pardeza said: "He would be very good for us because he would bring balance.

"The transfer market has turned the creative midfielders into an extinct species. The very few who are left are either highly valuable or impossible to prise away from their clubs.

"We're not signing him just for the sake of signing him. I wish there were more alternatives to Xabi, but the market does not offer any."

The very same ‘market' that Real have no trouble splashing their cash around.

Liverpool did not field Alonso in the 1-1 draw against Thailand on Wednesday fueling speculation that the Spaniard is on his way out of Anfield.