Liverpool's Alvaro Arbeloa could make a £4.5million return to Real Madrid, according to the player's agent.

The Spaniard was linked with a switch to the Bernabeu earlier in the summer but rumours had died down.

However, Arbeloa's representative, Manuel Garcia Quilon, remains in discussions with the Primera Liga giants and expects a conclusion by the start of next week.

Quilon told The Sun: "Discussions with Real are not over and I expect a solution early next week."

Real sporting director Jorge Valdano has also confirmed that the 26-year-old, who played for the club in 2004-5, remains a transfer target.

Valdano said: "Arbeloa is a basic part of our plans."

Arbeloa has one year remaining on his contract at Anfield and faces a fight for a first-team place on Merseyside following the arrival of Glen Johnson.