Real Madrid are preparing a multi-player swap offer for Liverpool captain Steven Gerrard.
Madrid sources say Real coach Jose Mourinho is reluctant to meet Liverpool's £35 million demands as he wants to use the cash for other targets.
Instead, he hopes to convince new Liverpool boss Roy Hodgson to part with Gerrard by offering midfield pair Rafael van der Vaart and Fernando Gago in exchange.
Gerrard was asked about Real's interest during England's World Cup campaign and refused to rule out a move when talking with Spanish journalists.
However, Hodgson insists he wants to hold on to his senior players and set out his vision to captain Gerrard in face-to-face talks on Thursday evening.
