Real Madrid will move to end Liverpool's hopes of re-signing Xabi Alonso by offering the Spain international a new two-year contract extension, according to the Sunday People.
The 31-year-old midfielder is out of contract at the end of next season, and speculation last week linked Alonso with a cut-price move back to Anfield.
But the report claims Real Madrid will offer Alonso a pay rise and another two years to ward off interest from Liverpool.
The Spaniard had indicated to club officials that he wanted to explore his options at the end of his current deal, putting Liverpool on alert.
And Brendan Rodgers was thought to be keen to put together a deal to bring Alonso back to Merseyside, but those hopes now look dashed.
Alonso was a fan favourite at Anfield during his five years in the city, and helped the Reds to an FA Cup and Champions League.
And his been equally as effective in Madrid, forming part of a Bernabeu midfield that's won a La Liga title and a Copa Del Rey trophy.
The report also claims Liverpool will be looking to recoup as much of their £35m transfer fee for Andy Carroll as possible this summer.
Newcastle are thought to be interested, but Rodgers has told the club they will have to stump up at least £17m to bring the England international back to the north east.