The Reds view Alexander-Arnold as a vital part of their plans moving forward, and it is understood that the England international is desperate to stay at Anfield, but an agreement over a new deal has not yet been reached.
Real Madrid are the team believed to be showing the biggest interest in Alexander-Arnold, as the reigning Spanish and European champions are looking for a long-term replacement for Dani Carvajal.
Bayer Leverkusen's Jeremie Frimpong has been linked with Arne Slot's side, but according to CaughtOffside, Sanchez is also on their radar amid the uncertainty surrounding his long-term future at Sevilla.
Real Madrid are also believed to be keen on Sanchez, while Manchester United have been credited with an interest in the 21-year-old, who has entered the final two years of his contract at Estadio Ramon.
Sanchez 'emerges as transfer target for Liverpool'
The Spaniard has made five La Liga appearances for Sevilla this season, scoring once, and he has demonstrated his versatility by operating in central midfield during the 2024-25 campaign.
Sanchez is largely seen as a right-back, but he has also featured in a wide attacking role for Sevilla, and there is a belief that he could be used further forward on a more consistent basis due to his attacking qualities.
Sevilla are finding it difficult to convince him to sign a new deal, and it is understood that he could be allowed to leave for a fee in the region of €25m (£20.9m) during next summer's transfer window.
Arsenal are also believed to be tracking Sanchez, with scouts from a number of Premier League clubs said to have watched him this season, but he could yet be the subject of an offer from Real Madrid in 2025.
Man United are "scouting" Sanchez
Transfer expert Fabrizio Romano said earlier this month that Man United were "scouting" Sanchez but had not yet decided whether or not to pursue him.
"One name coming up as well as [Eberechi] Eze is Sevilla winger Juanlu Sanchez, mentioned as a target for the Red Devils and also for Real Madrid in the Spanish press. For now, however, there is nothing concrete into it," he wrote in his column for CaughtOffside.
"We've had many links every day but the reality for the moment is that there are no talks, no negotiations - it's just normal scouting and nothing else."
Sanchez came through the youth system at Sevilla, making his debut for the first team in 2021, and he has represented the club on 44 occasions, scoring twice and registering three assists in the process.