Benitez is holding out for £5m and with Arbeloa’s agent, Manuel Garcia Quilon, at the Bernaneu on Monday day to facilitate the move, a deal looks imminent.

Real Madrid director, Jorge Valdano, said: “The lad (Arbeloa) only has a year left on his contract with Liverpool, and this gives us more possibilities.

“He can play in two or three positions, and this versatility is good.

“He is another option to evaluate.”

Valdano also denied that a personal rift with Liverpool manager Benitez would hinder those talks.

Valdano angered Benitez when he described the 2007 Champions League semi-final between Liverpool and Chelsea as “s--- hanging from a stick” and criticised the Anfield manager for mistrusting talent because of his own failure to make it as a leading player.

But Valdano said that he did not expect any ill feeling between the pair to hamper negotiations.

“What I’m sure about is that Liverpool and Real Madrid are above personal relationships,” he said. “Benitez was here (at the Bernabéu as a coach) and has kept friendships with employees of the club. Personal disagreements matter little in this.”

Reserve keeper Charles Itandje’s disappointing Anfield career, meanwhile, could be close to an end.

Malaga need cover for their veteran goalkeeper Francesco Arnau, and have spoken to Liverpool about a possible deal. Itandje has endured an unhappy spell on the pitch at Liverpool, culminating in the shock FA Cup exit to Barnsley 18 months ago, and was forced to apologise after unbecoming behaviour at this year’s Hillsborough Anniversary service at Anfield.

Liverpool, meanwhile, have stressed that they remain committed to the club’s television channel despite the collapse of Setanta, the platform on which it was broadcast. The Irish company went off the air just before 6pm on Tuesday night having gone into administration earlier in the day.

Liverpool will continue to broadcast via their website and are hopeful of getting the channel back on television screens as soon as possible.”

“LFC TV is currently broadcasting as normal and will continue to do so until further notice,” said a club statement.

“While we continue to produce live and pre-recorded content for the channel as normal, we are urgently investigating all possibilities available to us in returning to broadcasting in the British Isles as quickly as possible.”