THE saga over Xabi Alonso’s future took another twist yesterday when Liverpool target Gareth Barry joined Manchester City.

Barry completed a surprise £12million move from Aston Villa after agreeing terms on a five-year contract at Eastlands.

City, bankrolled by their billionaire Abu Dhabi owners, are believed to have offered the 29-year-old at least £80,000-a-week.

Barry had claimed he would only leave Villa for a Champions League club, but while City have not even qualified for the UEFA Europa League, the player has received assurances about impending new arrivals by City manager Mark Hughes and has been guaranteed a regular first-team place.

Rafael Benitez was keen on signing Barry this summer after his efforts last year were scuppered by Villa’s prohibitive £18m asking price.

Now Barry’s decision to move to City further complicates the future of Alonso, with the England international seen as an obvious replacement should the Spaniard leave Anfield.

Liverpool are bracing themselves for a substantial bid from Real Madrid for Alonso, with new Bernabeu president Florentino Perez having identified the player as a prime transfer target during his election campaign.

Reports in Spain maintain Real Madrid are preparing a deal worth around £23m, with Perez considering offering either left-back Gabriel Heinze or highly-rated striker Alvaro Negredo as part of any package.

One player who has no intention of leaving Liverpool is Yossi Benayoun, despite the player claiming he has received offers from English and Spanish clubs.

The Israel international enjoyed a period of excellent form after the New Year, ending the campaign with nine goals from 42 appearances.