Real Madrid are ready to walk away from the negotiating table for Liverpool midfielder Xabi Alonso.

Rafael Benitez, the Liverpool manager, is refusing to lower his £32 million asking price for the Spain international despite the long-running saga threatening to overshadow preparations for the start of the new season, says The Times.

"Some people obviously thought that because we said we wanted more Spanish players, they could ask for fees which don't correspond to reality," said Real president Perez said.

"A year ago, certain players we've asked about would have cost less than half the price we're being quoted now. If necessary, we'll find the Spanish players we would like for the squad in our youth system."