Real Madrid are prepared to sell Karim Benzema to Liverpool in the summer, according to Metro.
The French striker is still in favour at the Spanish giants, but the club are willing to listen to offers around the £34.5million mark.
Liverpool have been desperate to sign a world-class striker as the gap filled by Luis Suarez has not really been filled. Mario Balotelli has flopped on his return to England, only scoring once in the league since his £16million move from AC Milan last summer.
Benzema scored in Madrid's incredible 3-4 home defeat to Schalke on Tuesday, which saw the Spanish giants scrape through 5-4 on aggregate. Cristiano Ronaldo scored his 77th and 78th goals in Europe and put himself above former Real Madrid team-mate Raul and Barcelona's Lionel Messi.
Klass-Jan Huntelaar scored a brace for the German side as the holders hung on in the final few seconds of the game to join Porto as the first teams in the quarter-final draw.
Ballon d'Or winner Ronaldo has blasted fans who booed the team and waved white handkerchiefs, accusing the team of surrender. Gareth Bale was also booed by the Bernabeu faithful.
"I wont talk again until the end of the season." Ronaldo told reporters.
Spanish newspaper AS did a poll following Madrid's 1-0 defeat to Athletic Bilbao at the weekend, and the results showed that 32.2 percent of people would drop the £80million Portuguese player.
46.1 percent want to see Gareth Bale, the world's most expensive player, consigned to the bench whilst 21.7 percent think it is time to remove Benzema from the starting line-up. All three started in the defeat on Tuesday.
Meanwhile, it is also being reported that Liverpool will be allowed to sign former defender Alvaro Arbeloa for as little as £3.5million this summer. Despite not being out of contract until the end of next season, the imminent arrival of Porto full-back Danilo will see Arbeloa's first-team opportunities extremely limited.
Arbeloa played for the Merseyside club between 2007 and 2009. There are reports that his former Reds manager Rafael Benitez is looking to link up with the Spaniard at his current club Napoli.