Xabi Alonso has ended speculation that he could be set to return to Anfield by signing a new deal with Real Madrid, according to the Independent.
The 32 year old was due to be out of contract in the summer, but has now extended his contract with the La Liga giants to the end of the 2015/16 campaign.
The Spain international, who announced the news on Twitter by posting a picture of him and Real president Florentino Perez holding a shirt with ‘Alonso 2016’ on the back, is currently in his fifth season in the Spanish capital, having previously spent five years on Merseyside under Rafael Benitez.
Meanwhile, Valencia are set to make a loan move for Reds’ striker Iago Aspas, TalkSport understands.
The 26 year old has struggled to make an impression on Brendan Rodgers’ first team since arriving on Merseyside in the summer.
He netted his first goal for the club in a rare start in Sunday’s FA Cup third round victory over Oldham Athletic, but is still some way behind first choice forwards Luis Suarez and Daniel Sturridge in the pecking order.
Aspas scored twelve times in La Liga last season as he helped Celta Vigo narrowly avoid relegation.