Real Madrid are set to complete the signing of Liverpool defender Alvaro Arbeloa.

The Sun says he will make a £4.5million switch to the Bernabeu next week.

Arbeloa, 26, was signed from Deportivo La Coruna for £2.6m two years ago.

Liverpool boss Rafa Benitez originally wanted £8.5m for the full-back, who made 43 appearances last season.

Real responded with a bid of £2.5m but now the clubs appear to have reached a compromise figure of £4.5m.

Arbeloa's agent Manuel Garcia Quilon said: "Discussions with Real are not over and I expect a solution early next week."

And Real sporting director Jorge Valdano added: "Arbeloa is a basic part of our plans."