Alexander-Arnold's Liverpool contract expires on June 30th, whilst Madrid's opening game in the tournament is on June 18th against Al Hilal in Miami, 12 days earlier. The Club World Cup begins 16 days earlier, which means Madrid would have to pay Liverpool to release Alexander-Arnold early from his contract.
As reported by the BBC, the Spanish club are considering an offer of about €1m (£850,000) to release Alexander-Arnold early from his deal and would consider paying the wages Liverpool owe to Alexander-Arnold as they seek to find a solution that would suit both clubs in what is already one of the most controversial deals of the summer.
FIFA has confirmed that there will be a short transfer window to allow sides to make changes to their squad due to the timing of the tournament and how it comes right after another season with a packed schedule that will have exhausted many players. The window will be open between June 27 and July 3rd, which will allow the Liverpool defender to make the move and his former side to receive some compensation for his departure.