The 25-year-old has been with the Merseyside giants since the age of six and had made a total of 310 appearances in all competitions since and including his senior debut in 2016, scoring 19 goals and providing 81 assists.
Alexander-Arnold was a key cog in the Liverpool machine during the Jurgen Klopp era, helping the club win eight trophies including the Premier League, Champions League, FA Cup and two EFL Cups.
The England international, who represented his country at Euro 2024, is widely regarded as one of the best right-backs - particularly from a creative perspective - in Europe, and could prove to be an invaluable first-team asset for new head coach Arne Slot.
However, speculation over Alexander-Arnold's long-term future at Liverpool has surfaced in recent months, as he has now entered the final year of his contract at Anfield.
It has previously been reported that Spanish giants Real Madrid have set their sights on acquiring the services of Alexander-Arnold.
Real Madrid have 'concrete' interest in Alexander-Arnold
According to Bild, as quoted by The Sun, Los Blancos have developed a 'concrete' interest in the right-back and are 'in contact' with the Liverpool star over a potential transfer to the Santiago Bernabeu.
The report adds that Real Madrid have been in contact with Alexander-Arnold's camp for a whole month and will continue to monitor his contract situation with the Reds.
Carlo Ancelotti's side are believed to be preparing for life without right-back duo Dani Carvajal and Lucas Vazquez, who are both 32 years of age and will be out of contract in 2025 - the latter is set to sign a one-year extension after seeing his current deal expire last month.
Alexander-Arnold is seemingly viewed by Real Madrid as an ideal candidate to fill the right-back void in years to come, but it remains unknown as to whether the Liverpudlian is keen to leave his boyhood club or move abroad.
Should a move to Real Madrid materialise for Alexander-Arnold, he would link up with fellow Englishman Jude Bellingham, who starred for the Spanish giants in his debut campaign in 2023-24, as well as the club's newest recruit Kylian Mbappe, who was formally unveiled as Los Blancos player on Tuesday.
Speculation over Alexander-Arnold's future comes at a time when Liverpool have been linked with Feyenoord's versatile right-back Lutsharel Geertruida, who was a key player for the Dutch club under Slot last season.