Liverpool winger Jermaine Pennant's move to Real Madrid has broken down.

The Daily Post says Pennant's hopes of securing a dream move to Real Madrid appear to have been dashed after the Spanish giants withdrew their £3m offer to Liverpool.

The Reds received a bid from Real for their out of favour winger two days before Christmas but the proposed deal has now mysteriously collapsed.

Initially, personal terms were said to be a possible stumbling block but sources in Spain have indicated that Real withdrew their offer at the request of manager Juande Ramos who is said to be unconvinced about Pennant's ability to make an impact at the La Liga club.