Xabi Alonso on his way to Real Madrid as Liverpool confirm they have accepted bid for Spain star

By Sportsmail Reporter
Last updated at 6:46 PM on 04th August 2009

Liverpool have finally reached an agreement with Real Madrid that will see Xabi Alonso move to the Bernabeu.

The Spanish giants had been determined to conclude a deal either one way or the other today and had threatened to walk away from talks after finding themselves L7million short of Liverpool's L30m asking price following negotiations on Monday.

But the 27-year-old had made it clear he wanted to leave Anfield and the club's finally shook hands on the deal, subject to a medical which is due to take place on Wednesday.

Thanks for the memories: Xabi Alonso (right) has played his last game in red shirt

A statement on Liverpool's website confirmed: 'Liverpool Football Club this evening confirmed they had reached agreement for the sale of Xabi Alonso to Real Madrid, subject only to a medical.

'The terms of the deal will remain confidential and undisclosed.'

Reports in Spain put the fee at L25.5m, though sources in England suggest the Reds held out for closer to their target. Alonso will pull in a hefty after-tax salary of between L70,000 and L80,000 a week on a four-year deal with Madrid.

It is understood that Alonso's camp had indicated he would join the Bernabeu revolution before Florentino Perez had even been returned as president on June 1, but Liverpool have played hardball.

Boss Rafa Benitez had insisted the midfielder was not for sale and quoted prices upwards of L40m when both Chelsea and Manchester City enquired earlier in the summer.

Perez publicly pursued Alonso from day one of returning to office but had been ready to walk away as the deal got expensive.

However, new head coach Manuel Pellegrini and general director Jorge Valdano put the pressure on last week by telling Perez there was no viable alternative because Alonso's brand of attacking midfielder are few and far between.

Madrid lined up Standard Liege's Steven Defour over the last few days and the Belgium international even gave an interview to Spanish newspaper Marca this morning with the claim that he would be just as good as Alonso for Los Merengues.

But the 21-year-old is far from the finished article and Madrid have instead secured their No 1 choice.

Defour could now end up replacing Alonso at Anfield with contact already established between Liverpool and Liege. The Belgians want about L18m for a player also tracked by Everton, Aston Villa and Arsenal.