Alexander-Arnold is set to earn €15 million (£12.5 million) per year, which is considered equivalent to a substantial transfer fee.
Real Madrid has the financial flexibility to provide higher wages since they are not incurring an actual transfer fee for him.
It is stated that nothing at this stage will change the defender’s decision.
Furthermore, Real Madrid might have an influence on Liverpool’s defensive plans. The Reds are said to be assessing possibilities to recruit Bournemouth center-back Dean Huijsen.
However, after reaching an agreement with Alexander-Arnold, Real Madrid is reportedly moving forward in securing Huijsen, who is understood to have decided to leave England and is keen on making a return to Spain.