Real Madrid have reportedly told midfielder Asier Illarramendi his services are no longer required at the Santiago Bernabeu.

Spanish website fichajes.net is reporting Illarramendi's most likely destination now appears to be Liverpool, with the Anfield club understood to be preparing a £15.3million bid for the 25-year-old Spaniard.

Arsenal have also been linked with Illarramendi, who has been told by Madrid boss Rafa Benitez that he is not part of the former Liverpool manager's plans this season.