Los Blancos are in the market for a long-term replacement for Dani Carvajal, who will be missing until the 2025-26 campaign due to the serious knee injury that he suffered earlier this month.
Alexander-Arnold is the club's number one target, with the England international's contract at Liverpool due to expire next summer, but the Reds are believed to be confident of soon signing him to a new deal.
According to Tuttosport, Real Madrid have another name on their right-back shortlist, with Cambiaso set to become the leading target if it becomes clear that a deal for Alexander-Arnold will not go through.
The report claims that Los Blancos have been tracking his performances this season, but a move will be difficult due to the fact that he only recently signed a new deal, with his current terms due to run until June 2029.
Real Madrid 'interested in Juventus defender Cambiaso'
Cambiaso started his professional career with Genoa before moving to Juventus in 2022, but he spent the 2022-23 campaign with Bologna, representing the club on 34 occasions in all competitions.
The 24-year-old was a key player for the Old Lady last season, making 39 appearances, while he has featured on nine occasions during the 2024-25 campaign, scoring once and providing one assist in the process.
Cambiaso has shown his versatility by operating in a number of different positions this season, including as a left-back in recent matches, and his ability to operate in a number of areas will make him an even more attractive proposition for Los Blancos.
The Italian scored from right-back in Juventus' opening game of the new Serie A campaign, before moving to a right-sided wing-back role for the fixtures with Hellas Verona and Roma.
How long will Carvajal stay at Real Madrid?
Shortly after Carvajal's serious knee injury was confirmed, Real Madrid announced that the right-back had signed a new contract until the end of the 2025-26 campaign.
However, it remains to be seen whether he is able to reach his pre-injury levels due to the seriousness of the damage, and the fact that he is entering the latter stages of his career.
Carvajal is one of the best right-backs in world football, with the Spaniard again in outstanding form during the 2023-24 campaign, but Real Madrid need to start looking to the future.
Alexander-Arnold is admired by major figures at Bernabeu, but a deal for the Englishman would be complicated one, and it is expected that he will ultimately come to an agreement with his Merseyside club over a new contract.