While Arne Slot has made a marvellous start to life with the Reds, who are five points clear of Manchester City at the top of the Premier League table, three high-profile contract situations have been an unwelcome distraction.
All of Alexander-Arnold, Mohamed Salah and Virgil van Dijk can leave for nothing in the summer of 2025, and in just a few weeks' time, they will be free to speak to foreign clubs over a pre-contract agreement.
Twenty-six-year-old Alexander-Arnold is thought to have been lined up as a successor to Dani Carvajal at the Bernabeu, and there has been talk of a possible January approach due to the Spaniard's long-term knee injury.
Blancos head coach Carlo Ancelotti has suggested that his side will not dip their toe into the winter market, though, and Liverpool are also expected to block any attempts to prise the right-back away in January.
Alexander-Arnold 'continues to reject' Liverpool renewal offers
However, Spanish outlet Relevo claims that the England international is 'continuing to reject' attempts from Liverpool to get him to sign a new deal, leaving them at serious risk of losing him for nothing in the summer.
Talks with the player's entourage are reported to be going at 'full steam ahead' for a summer move, as a January deal is seen as 'practically impossible' for more than one reason.
Alexander-Arnold apparently wants to win at least one more trophy at Anfield before moving on, adding to the eight pieces of silverware that he has already clinched on Merseyside since breaking into the first team.
The 26-year-old has also conjured up over 100 goal contributions for Liverpool in all competitions, 19 of his own and 83 assists, setting up two goals in 15 matches in the current campaign.
Alexander-Arnold had to pull out of the latest England squad with a hamstring problem, but there is optimism that he will be back in time to face Real Madrid in the Champions League on November 27.
Will Real Madrid sign any defenders in January?
A winter move for Alexander-Arnold has not been completely ruled out, but Real Madrid are aware that it would be a 'very complicated' operation and would therefore rather wait until the summer.
The same goes for Bayern Munich's Alphonso Davies, who is supposedly also set to join as a free agent at the end of the season, even if his agent has affirmed that all options remain on the table.
Real Madrid may try to reinforce the centre of their defence in January, though, as the luckless Eder Militao will not play again this season due to a serious knee injury, while David Alaba is still on the mend from a similar problem.
Arsenal's William Saliba and Tottenham Hotspur's Cristian Romero have been heavily linked, but winter moves for both are seen as impossible; instead, RB Leipzig's Castello Lukeba and Al-Nassr's Aymeric Laporte could be targeted.
The latter has opened the door to making the switch to Real Madrid, who sit six points adrift of leaders Barcelona in second place in the La Liga table.